Foreign institutional investors (FII) remained a net seller on the Septembe’s last trading session and offloaded shares worth net Rs 1,685.70 crore, on September 29, 2023, according to the provisional data available on the NSE. Meanwhile, the domestic institutional investors (DII) added shares worth net Rs 2,751.49 crore on Friday.
“Persistent FII selling in emerging markets, including India, in September has taken a toll on markets. If FII outflows gain pace, markets could be in for extended downward spiral, as overseas investors would park their funds in the safe haven dollar securities,” Shrikant Chouhan, Head of Research (Retail), Kotak Securities.
Foreign institutional investors (FII) or Foreign portfolio investors (FPI) are those who invest in the financial assets of a country while not being part of it. On the other hand, domestic institutional investors (DII), as the name suggests, invest in the country they’re living in. Political and economic trends impact the investment decisions of both FIIs and DIIs. Additionally, both types of investors – foreign institutional investors (FIIs) and domestic institutional investors (DIIs) – can impact the economy’s net investment flows.