FIIs start booking profit on Christmas eve

Mumbai: Foreign institutional investors (FIIs), that had been net buyers for more than a month in a row, have turned sellers all of a sudden on the eve of Christmas. FIIs in November alone purchased Equity worth Rs 65,317 crore. However, on Monday, December 21, being the first day when FIIs reported negative figure of Rs 323.55 crore on the selling front.

Similar was the case on Tuesday, the next day when FIIs were the net sellers. The FIIs bought equity worth Rs 6,560.82 crore, whereas they sold equity worth Rs 6,847.15 crore on the day, thus they turned out to be net buyers to the tune of 286.33 crore on Monday.

FIIs have continued their buying spree of Indian equities, lapping up stock worth more than Rs 38,410 crore so far in December amid optimism about the availability of a Covid-19 vaccine and faster-than-expected economic recovery.

In contrast, DIIs sold shares worth Rs 48,319 crore in November. DIIs also sold shares worth Rs 29,165.06, on Monday, the first day, when DIIs reported positive figure of Rs 486.12 crore buying.

Developing economies have the highest volume of FII activities. Since these economies are dynamically growing, they provide bigger opportunities for investors by offering higher growth potential as compared to mature economies.

Experts feel that selling by FIIs was witnessed probably due to lockdown as New Covid-19 strain has impacted EU nations. Again, will the selling continue is the key question, analysts say.

They also believe that selling by FIIs may lead to downfall in equity markets. Overall, FIIs were positive on specific Indian markets, however when there is fire at home, one has to save home first rather than neighbours.