FII’s Snapped Their 38-Day Selling Streak on November 26

Foreign institutional investors (FIIs) recorded a net purchase of ₹1,157.70 crore in equities on Tuesday, November 26, building on the massive ₹9,947.55 crore inflow the previous day, according to provisional data. This follows the end of a record 38-session selling streak, indicating a continuation of FII buying momentum in Indian markets.

DII Sell-Off Intensifies

In contrast, domestic institutional investors (DIIs) net sold equities worth ₹1,910.86 crore on November 26, following a ₹6,907.97 crore sell-off the previous day (November 25). The stark divergence between FII and DII trading patterns highlights differing market sentiments, with DIIs continuing to offload equities amid the broader market recovery.

Market Sentiment Boosted by Key Factors

The recovery in market sentiment is largely attributed to the MSCI index rebalancing and the political stability resulting from the BJP-led NDA’s victory in Maharashtra. These developments have injected optimism into the market, contributing to the shift in investor behaviour.

MSCI Index Rebalancing Drives Inflows

The MSCI rebalancing on November 25 saw the inclusion of five Indian companies — Voltas, Oberoi Realty, BSE, Kalyan Jewellers, and Alkem Laboratories — into the Global Standard Index. This led to an estimated passive inflow of $2.5 billion, significantly boosting the ₹9,948 crore purchased by FIIs on that day.

Shift in Foreign Fund Focus

While foreign funds initially shifted their focus to China following the country’s announcement of stimulus measures, pulling investments from Indian markets in favour of cheaper Chinese equities, analysts now believe that the China growth narrative has lost momentum. This shift could signal a return to India-focused investments as the Chinese economic outlook faces challenges.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.