FIIs vs DIIs In Share Market: So far in the month of December, foreign institutional investors (FIIs) have sold shares worth about Rs 15,959 crore in the Indian stock market. Whereas domestic institutional investors (DIIs) have bought shares worth Rs 39,965 crore during this period. This means that Indian investors have invested much more than foreign investors and have helped drive the market.


Market experts say that share sales by foreign investors may reduce in the coming days, because India’s economy is performing well and companies’ earnings are expected to increase in future. Apart from this, common people are continuously investing through mutual fund SIP, which is strengthening the market.


Bumper investment in mutual fund SIP


For the last three months, more than Rs 29,000 crore is being invested in mutual fund SIP every month. According to data released by the Association of Mutual Funds in India (AMFI), about Rs 29,445 crore was invested through SIP in the month of November. Due to this continuous investment, domestic investors are able to bear the impact of continuous selling by foreign investors.


What did the expert say?


Dr. VK Vijayakumar, Chief Investment Strategist of Geojit Investments Limited, said that when the country’s economy is strong and companies’ earnings are expected to increase, then continuous selling of shares by foreign investors cannot be considered right in the long run. Experts believe that in such a situation, it will be difficult for foreign investors to continue selling in the market for a long time.


However, there are some reasons due to which there is pressure on the stock market. These include fall in the value of rupee, selling by foreign investors, delay in India-US trade agreement and new technology. artifical Intelligence (AI) involves uncertainties. But all these reasons are temporary and their effect may reduce with time.



Stock market expected to strengthen


In November both FII and DII indian equity market Made net purchases of $40 million and $8.7 billion respectively. India’s weight in the MSCI Emerging Markets index was 15.8 per cent in November, compared to 15.2 per cent in October and 19.9 per cent in November. Experts believe that the most important factor that decides the direction of the stock market is the earnings of companies. In the coming time, especially in the financial year 2027, the earnings of companies are expected to be better, which can strengthen the stock market.


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