In October 2023, domestic institutional investors (DII) set a new record in the Indian stock market. They invested more than Rs 1 lakh crore, while foreign institutional investors (FII) sold heavily. This investment strengthened the Indian market and helped it perform better than global markets.

Impact of FII selling

As of October 24, FPIs sold Rs 1,02,931 crore in the Indian stock market. Despite this, DIIs maintained stability in the market with their investments. The total investment of DII in October has so far reached Rs 4.41 lakh crore. This increase is happening due to increasing retail participation through mutual funds, which shows that domestic investors are maintaining their interest in the market.

Economic data gives confidence

Recent economic data, such as strong PMI from the Reserve Bank of India (RBI) and positive economic growth projections for FY 2024-25, are giving positive signals for the market. Investors are hopeful that economic recovery may happen in the coming months, which will provide good investment opportunities for them.

The changing picture of stocks

On October 30, foreign investors sold shares worth Rs 4,613 crore, while domestic investors bought shares worth Rs 4,518 crore. This is a new trend, in which investors are now focusing on the performance of the company. Shares of companies that have good results are rising by up to 20%, while shares of companies that have poor results are seeing a decline of up to 15%.

New strategy for investors

Experts say that at this time investors are reacting differently to good and bad results. This means that they are now focusing on the performance of specific companies rather than focusing on the overall state of the market. This new strategy is a positive sign for the market and shows that domestic investors remain strongly invested in the Indian stock market.