On October 5, 2023, foreign institutional investors (FIIs) sold shares worth a net of Rs 1,864.20 crore, while domestic institutional investors (DIIs) purchased shares worth a net of Rs 521.41 crore, according to provisional data available on the NSE.

In the month up to October 5, 2023, FIIs divested shares worth a net of Rs 8,322.36 crore, while DIIs acquired shares worth a net of Rs 3,651.92 crore. During September, FIIs offloaded shares worth a net of Rs 26,692.16 crore, while DIIs added equities worth a net of Rs 20,312.65 crore.

Market sentiment received a boost from positive PMI data and a decline in crude oil prices. The reduction in FIIs’ selling pressure helped rebound sectors like banking and information technology (IT) shares. Furthermore, the market anticipates that the Reserve Bank of India (RBI) will maintain interest rates, given the subdued external demand outlook, which suggests a disinflationary trend in the future, according to Vinod Nair, Head of Research at Geojit Financial Services.

Foreign institutional investors (FIIs) or foreign portfolio investors (FPIs) invest in the financial assets of a country without being part of it, while domestic institutional investors (DIIs) invest in the country where they reside. Both FIIs and DIIs are influenced by political and economic trends in their investment decisions, and their activities can impact the net investment flows of the economy.