Domestic Investors Show Strength as Foreign Investors Sell in Indian Stock Market
In New Delhi, domestic investors, including both institutional and retail, have been making a significant impact on the Indian stock markets. Despite foreign investors selling large quantities of shares recently, domestic investors have stepped up their buying activities.
Foreign Investors’ Selling Spree
According to NSDL data, October has seen the highest selling by foreign investors in the equity market this year. In just 12 days, foreign investors sold net equities worth Rs 58,711 crore. This week alone, from October 7th to 11th, they sold equities worth Rs 31,568.03 crore, following Rs 27,142.17 crore the previous week.
Domestic Investors’ Strong Buying
Domestic investors, especially mutual funds, have countered this selling with strong buying. Mutual funds were net buyers at Rs 57,792.20 crore this month. Other domestic investors also showed confidence, purchasing shares worth Rs 11,633 crore. Insurance companies, banks, and Portfolio Management Services contributed to the buying spree.
Market Stability and Expert Opinions
Market experts remain optimistic about the Indian market’s stability due to strong domestic support. Vinod Nair, Head of Research at Geojit Financial Services, noted that the market traded sideways due to various factors, including US inflation and geopolitical challenges, affecting foreign investors’ focus.
Doubts Revealed
Domestic Investors -: Domestic investors are people or institutions within India who invest in the Indian stock market. They can be individuals, mutual funds, or companies based in India.
Foreign Investors -: Foreign investors are people or institutions from outside India who invest in the Indian stock market. They can be from any other country and invest in Indian companies’ shares.
Mutual Funds -: Mutual funds are investment programs funded by shareholders that trade in diversified holdings. They are managed by professional managers and allow people to invest in a variety of stocks and bonds.
Equities -: Equities are shares of ownership in a company. When you buy equities, you own a part of that company and can earn money if the company does well.
Rs 58,711 crore -: Rs 58,711 crore is a large amount of money, specifically 587.11 billion rupees. It represents the value of shares sold by foreign investors in the Indian stock market.
Net Purchases -: Net purchases refer to the total amount of shares bought minus the shares sold. It shows how much investors are buying more than they are selling.