Foreign Institutional Investors (FIIs) Surge as Major Buyers, Acquiring Rs 20,000 Crore Worth of Stocks in a Span of Two Weeks

In a notable shift in their investment approach, Foreign Institutional Investors (FIIs) have emerged as significant buyers, injecting approximately Rs 20,000 crore into the market over the past two weeks, including substantial bulk purchases, according to insights shared by V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The recent market rally is propelled by sectors such as banking and IT, which had previously been lagging performers. During this fortnight, the Nifty has seen a 6% increase, Bank Nifty surged by 7.4%, and Nifty IT experienced a remarkable 11% uptick. The prevalence of substantial delivery-based buying in these segments suggests their resilience, Vijayakumar pointed out.

A noteworthy observation from recent market dynamics is the consistent triumph of Domestic Institutional Investors (DIIs) over FIIs in their ongoing tug-of-war. DIIs have consistently outplayed FIIs by buying stocks when the latter sell and selling those very same stocks back to them at considerably higher prices.

Despite the positive market sentiment, particularly with favorable global and domestic factors, Vijayakumar suggests a cautious approach. While advocating for continued investment in large caps, he advises considering profit booking in mid and small caps where valuations are notably high.

On Monday, the BSE Sensex inched up 27 points to reach 71,511 points, with Sun Pharma witnessing a 1.6% increase. The market appears poised for strategic shifts, emphasizing the need for investors to navigate wisely amidst evolving trends.