FII’s Buying Big In The Market This Year, $2 Billion After The Budget

Well,  if the seemingly cheerful Union Budget could only provide the Indian Stock Markets with short term happiness, the credit sure needs to be given to the Foreign Institutional Investors (FII).

Here is how the FII contribution has fared out after the budget announcement.Since February 26,

FIIs have pumped in over $2.4 billion into the Indian market.

A bulk of this FII inflow has come in March accounting close to 10,900 crores already.Well, the budget definitely provided some long term industry positives and foreign funds are excited to park their money back in Indian shores.

Moreover, this year has already seen a flurry of IPO’s in the primary market.This also suggests the increase FII buying in the Indian Capital markets.After all, institutional investors have been healthy contributors in the IPO subscriptions this year.

But, then why aren’t the markets reflecting the increased buying and trading range bound?

Well, the in-house institutional investors a.k.a. the Domestic Institutional Investors(DII) seem to be playing the role of neutralizer to perfection.

DII’s have net sold equities worth Rs 3,576 crore this month

So, the markets have not been reflecting the true impact of the increased FII buying.Moreover, with the budgets leading to a sudden upsurge in the markets, a lot of retail investors have chosen to book profits across counters which again has taken money out of the market.

The markets are evenly poised right now, with Sensex around 17k levels and NIFTY managing to stay above the crucial 5k level.

It will be interesting to see which way the markets tilt in the coming months.Positive global and domestic cues ( A decreasing food inflation could provide some real upside momentum) might help the markets cause.

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