The Indian stock market experienced another day of notable institutional investor activity on September 2, 2023, with foreign institutional investors (FIIs) and domestic institutional investors (DIIs) continuing to play pivotal roles. However, the day was marked by contrasting trends in their buying and selling patterns.
**Foreign Institutional Investors (FIIs)**:
– In the cash segment, FIIs made gross purchases amounting to ₹6,833.29 crore.
– Their gross sales, on the other hand, were significantly higher at ₹10,200.96 crore.
– Consequently, FIIs recorded a substantial net sales figure of -₹3,367.67 crore in the cash segment.
– In the derivatives market, FIIs maintained a mixed approach:
– In the index future segment, FIIs recorded gross purchases of ₹2,183.82 crore and gross sales of ₹2,034.17 crore, resulting in a net purchase of ₹149.65 crore.
– In the stock future segment, FIIs continued to be net buyers with gross purchases totaling ₹14,480.53 crore and gross sales of ₹13,742.33 crore. This led to a net purchase of ₹738.20 crore.
– In the options segment, FIIs remained active:
– In index options, FIIs made gross purchases of ₹1,114,149.26 crore and gross sales of ₹1,110,229.19 crore, resulting in a net purchase of ₹3,920.07 crore.
– In stock options, FIIs recorded gross purchases of ₹18,842.92 crore and gross sales of ₹19,462.43 crore, leading to a net purchase of ₹619.51 crore.
While FIIs reduced their positions in the cash segment by a significant margin, they maintained a mixed approach in derivatives trading, indicating a degree of hedging and profit-taking. The substantial net purchases in index options suggest a strategic focus on market indices.
**Domestic Institutional Investors (DIIs)**:
– DIIs continued to be net buyers in the cash segment, with gross purchases amounting to ₹10,461.54 crore.
– Gross sales by DIIs were lower at ₹7,898.06 crore.
– This resulted in a net purchase figure of ₹2,563.48 crore in the cash segment.
DIIs, including mutual funds and insurance companies, sustained their positive outlook on the Indian market, with consistent net buying activity in the cash segment. Their confidence in the market’s growth prospects remained evident.
The contrasting activities of FIIs and DIIs underscore the complexity of market dynamics and the role played by institutional investors in influencing market sentiment. As investors closely monitor these trends, market conditions are expected to continue fluctuating, influenced by both domestic and global factors.
Analysts and market participants will closely watch the actions of FIIs and DIIs in the coming days as these trends often provide crucial insights into market direction and investor sentiment.
