The effect of the ongoing selling in the market by foreign investors for some time now is showing on the market related data. The share of foreign investors in the companies listed on NSE has come down to 15.98 percent at the end of the month of October. This level is the lowest level in the last 12 years. At the same time, the value of assets under custody in equity of foreign investors has come down to Rs 71.08 lakh crore at the end of October. Which was Rs 77.96 lakh crore in the month of September. That is, the asset under custody in equity has decreased by Rs 6.88 lakh crore in a month and during this period it has seen a decline of 8.8 percent. This decline has been the sharpest decline since March 2020.


However, a special trend has been seen that amid the selling of FIIs, DIIs are increasing their presence in the market and there are indications that the share of DIIs may be more than FIIs in October. Usually the share of FIIs has been more than DIIs. In October, the share of mutual funds has increased from 9.32 percent to 9.58 percent in a month. The market value of shares held by MFs in October was Rs 42.36 lakh crore. At the same time, the value of stocks held by DIIs at the end of the September quarter is stable at Rs 76.8 lakh crore. According to the report of Money Control, the data of asset under custody of DII for October has not been released yet. However, looking at the inflow of Rs 1 lakh crore from domestic investors last month, analysts believe that now the share of DIIs can be more than that of FIIs. Which is a sign of a big change for the stock market. DIIs and retail investors are continuously increasing their purchases in the market, their total share has crossed 26 percent in the September quarter. Experts believe that FIIs still play a key role in the market but now their influence has reduced. This is the reason that despite the strong selling by FIIs in a month, the market has slipped only 6 percent.