Mumbai11 hours ago
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- This level of withdrawal by DII from the market is the lowest level since March 2016.
- In March 2016, domestic investors pulled out Rs 16,891 crore.
The market has witnessed excellent recovery in the last one month due to strong global cues. The reason for this is the news of large relief package in the US and the huge investment of foreign institutional investors (FII) in the market. In October, a total investment of $ 2.5 billion (18.54 thousand crore rupees) was made by FII in the market. Whereas domestic institutional investors (DII) pulled out $ 2.4 billion (17.80 thousand crore rupees) from the market during the same period.
DII withdraw money from the market
Market growth was strengthened by foreign investment and news on the one hand, on the other hand domestic investors withdrew money from the market. According to Motilal Oswal Financial Services, this level of withdrawal by DII from the market is the lowest level since March 2016. In March 2016, domestic investors pulled out Rs 16,891 crore. During this time, foreign investors had invested 24,201.51 crores.
Record increase in market cap
The market cap of the companies listed on BSE on Friday reached a record 163.60 lakh crore rupees for the first time. At the same time, the market cap of Nifty Mid Cap 100 is still 24% below its highest level, which it touched on December 2019.
Markets ran upwards from election in America
The BSE Sensex closed at 41,893 on Friday due to a steady rise in the week. It has reached its highest level of 42,059.45. The Sensex touched a record high of 16 January this year. Apart from this, the Nifty has also closed at the 12,263 level.
Investors got great returns in a week
The global market is also on the rise due to the lack of clear results of the American presidential election and the news ahead of Biden in the trends. This is why the growth of Indian stock market is being supported. The impact of the US election is that the Sensex has gone up by 2279 points and the Nifty by 622 points this week. So far in November, foreign institutional investors have invested Rs 8,529.54 crore. While domestic institutional investors have pulled out Rs 3,851.20 crore from the market.
Effect of festive season
According to the report, companies whose business model was affected due to the epidemic performed well in the past. On the other hand, due to the festive season, there was an increase in demand, which made the corporate commentary positive on demand recovery. Apart from this, there is an improvement in leverage and cash flow in the first half of FY 2021 as compared to the first half of FY 2020.