Amidst turbulent market conditions witnessed by the Sensex and Nifty, domestic institutional investors (DIIs) demonstrated a robust show of confidence by purchasing shares worth Rs 9,093.72 crore on March 13. In stark contrast, foreign institutional investors (FIIs) were net sellers, offloading shares amounting to Rs 4,595.06 crore on the same day, as per provisional data from the stock exchanges.
During the trading session, DIIs actively engaged in the market, buying shares worth Rs 20,267.90 crore while selling shares worth Rs 11,174.18 crore. Meanwhile, FIIs executed substantial buying activity, acquiring shares worth Rs 33,223.63 crore, although they balanced this with sales totaling Rs 37,818.69 crore.
Despite the prevailing downward pressure on Indian benchmark indices, with the Sensex closing 906.07 points lower at 72,761.89 (down 1.23 percent) and the Nifty 50 ending 338.00 points lower at 21,997.70 (down 1.51 percent), DIIs’ confidence remained steadfast.
The broad-based selling observed in the midcap and smallcap segments, with the BSE Midcap and BSE Smallcap indices declining by 4 percent and 5 percent respectively, reflects the market’s cautious sentiment.
Investor sentiment towards small-cap stocks has been influenced by various factors, including an Enforcement Directorate raid on Dubai-based hawala operator Hari Shankar Tibrewal and 13 other entities. Additionally, the SEBI-mandated stress test on small and midcap mutual funds has further impacted small-cap stocks.
In March, FIIs have accumulated shares worth Rs 9,818.97 crore, while DIIs have acquired equity worth Rs 28,589.28 crore. Interestingly, DIIs have been net sellers only on March 2, when they sold shares worth Rs 44.71 crore.