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News Topical, Digital Desk : Foreign institutional investors (FIIs) are once again showing confidence in the domestic stock market. After March, April and May, FIIs have also made huge purchases in June. Their investment has increased especially in financial services, chemical, and oil and gas sectors, while they have withdrawn money from FMCG (fast moving consumer goods) and power sectors. Let us get complete information about this.

Great return of FIIs
FIIs have increased their confidence in the Indian markets. Between June 16 and 20, they made big purchases and invested Rs 8,700 crore in just five days. Here are the details of the activities of FIIs and domestic institutional investors (DIIs) this year:
 

  • March: FIIs invested Rs 2,014 crore and DIIs invested Rs 37,585 crore.
  • April: FIIs invested Rs 2,735 crore and DIIs invested Rs 28,228 crore.
  • May: FIIs invested Rs 11,773 crore and DIIs invested Rs 67,642 crore.
  • As of June 15: FIIs sold Rs 4,812 crore, while DIIs bought Rs 44,149 crore.


Why is FIIs' trust in India increasing? There
are many big triggers for FIIs' trust returning to India. The first is that there is a forecast of a good monsoon this year. Better rains are expected to strengthen agriculture and rural economy. Apart from this, the reduction in global interest rates has made investment easier. There has been an improvement in demand from Indian consumers.

Apart from this, the central government is giving special emphasis on infrastructure. The government's emphasis on infrastructure is attracting foreign investors. At the same time, if we look at the global level, there has been a reduction in concern about Donald Trump's reciprocal tariff.

Where did FIIs invest money?

  • Financial Services: Investment of Rs 4,685 crore, which is the highest.
  • Chemicals: Rs 1,405 crore
  • Oil, gas and fuel: Rs 1,199 crore
  • Capital goods: Rs 1,191 crore
  • Realty: Rs 431 crore


Due to this investment, the shares of companies in these sectors are seeing a rise. Especially the financial sector, such as banks and non-banking financial companies (NBFCs), remain the choice of investors. Increasing contracts and production capacity in the chemical sector, as well as stable demand in oil-gas and the story of energy transition, are attracting FIIs.

Where did FIIs withdraw money?
 

  • FMCG: Selling of Rs 3,626 crore
  • Power: Rs 3,120 crore
  • Consumer durables: Rs 1,893 crore
  • IT: Rs 1,713 crore
  • Consumer Services: Rs 1,461 crore


FIIs sold in the FMCG and power sectors due to high valuations, weak demand in the short term and caution ahead of the first quarter results.

What does the return of FIIs mean?
The Indian stock market is excited due to the buying by FIIs. This is good news for investors of companies in the financial, chemical, and oil-gas sectors. However, selling in sectors like FMCG and power is putting pressure on these companies. DIIs have tried to keep the market stable by buying in these sectors.

In the coming weeks, the first quarter results, global trade policy and the US Federal Reserve's interest rate decisions will affect the investments of FIIs. Tensions in the Middle East can also affect investments.


Read More: Amid peace in West Asia, the market rose for the fourth consecutive day, Sensex rose by 140 points, these stocks jumped

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