DIIs net buy shares worth ₹4,610 crore, while FIIs net sell ₹5,579 crore in a volatile session

According to provisional data from the NSE, on October 1, Domestic Institutional Investors (DIIs) made a strong purchase of shares, net buying equities worth ₹4,610 crore, while foreign institutional investors (FIIs) offloaded shares worth ₹5,579 crore. 

The sharp contrast between the buying and selling activities of DIIs and FIIs has once again highlighted the complexities of share market investment. DIIs bought shares worth ₹14,435 crore but sold shares totalling ₹9,826 crore, indicating a bullish stance on the domestic market.

FII sales outweigh purchases

FIIs, however, continued their selling spree, buying ₹12,628 crore worth of shares but offloading shares worth ₹18,207 crore. This marks a persistent trend of net selling by FIIs, which has amounted to ₹1.45 lakh crore so far this year. While FIIs have been withdrawing capital from Indian markets, DIIs have provided a steady counterbalance by making significant purchases, with a net buying total of ₹4.23 lakh crore for the year.

Market performance at a glance

At the close of the trading session, the benchmark indices reflected the cautious investor sentiment. The Sensex ended the day slightly down by 33.49 points, or 0.04%, settling at 84,266.29, while the Nifty also saw a minor dip of 13.95 points, or 0.05%, finishing at 25,796.90. Despite these declines, the market did witness selective buying in sectors like media, auto, and IT. Tech Mahindra, M&M, Britannia Industries, Adani Enterprises, and Infosys emerged as the top gainers on the Nifty.

On the other hand, some key players saw their shares decline. IndusInd Bank, ONGC, Asian Paints, Bajaj Auto, and Titan Company were among the major losers. The sectors that experienced selling pressure included telecom, power, FMCG, oil & gas, and real estate, reflecting mixed sentiment across industries.

Analysts’ view on the market outlook

Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, noted that exchange-related stocks rallied as no action on F&O tightening was announced following a recent regulatory meeting. He added that the market is expected to consolidate in the near term, with stock-specific movements becoming more prevalent as companies prepare to announce their quarterly updates.

Khemka also highlighted that investors are likely to take cues from key economic data from the United States, particularly the Job Jolts and manufacturing data, which are expected to be released shortly. These international factors could play a crucial role in shaping market movements in the coming days, especially considering the ongoing global economic uncertainties.

Outlook for share market investment

As we move further into the earnings season, investor focus will shift towards corporate results and economic indicators that could influence market trends. For those looking at long-term share market investment, it’s important to monitor both domestic and international market trends closely. With FIIs pulling out capital and DIIs continuing to inject funds, the Indian market is likely to witness more volatility in the near future.

While the divergence between DII buying and FII selling continues, it remains to be seen how this tug-of-war will play out in the broader market scenario as external economic data becomes more prominent.