DII's net inflows in first 3 months of this year at Rs 83,000 crore

20 Apr 2023 , 11:31 AM

India was the best-performing emerging market in 2022 despite high withdrawals from foreign institutional investors, largely because of record inflows from domestic institutional investors.

Despite the instability in the world’s markets, DIIs have continued to buy stocks, investing Rs 83,200 crore in the first three months of 2023, according to statistics provided by the NSE. This is close to matching the total inflows recorded in 2021.

DIIs net investments increased from Rs 87,600 crore in 2021 to a record-breaking Rs 2.7 lakh crore in 2022.

It’s interesting to note that out of the net inflows of Rs. 83,200 crores, Rs 30,500 crore arrived in March alone.

In comparison to FY22, DIIs net equity investments increased to Rs 2.6 lakh crore in FY23 from Rs 2.1 lakh crore.

The systematic investment plans (SIP) used by individual investors to invest in mutual funds have been a major factor in the robust buying by DIIs.

In March, SIP investments reached a record high of Rs14,276 crore.

As a result of the benchmark Nifty50 index’s more than 10% correction since its top in December 2022, value buying has become more prevalent at lower levels. Midcap and smallcap equities trailed large-cap companies, but as the market as a whole has stabilized, they have gained pace.

Insiders in the market believe that retail investor inflows will continue as a result of improving macroeconomic conditions, declining inflation, and forecasts of rising corporate earnings.

Even though the local story is still positive, global annoyances continue, which could keep causing spikes in share market volatility.

For feedback and suggestions, write to us at [e-mail]