Stock Market FII & DII Data: According to Motilal Oswal Financial Services, foreign institutional investors (FIIs) pulled out $4.9 billion from the market in May, while domestic institutional investors (DIIs) pulled in $6.1 billion in May. Since the last eight months, foreign institutional investors (FIIs) have remained constant sellers, in such a situation, the stock market is able to breathe a sigh of relief on the basis of domestic institutional investors (DIIs) who have been buying continuously for the last 15 months.
FIIs withdraw $25 billion in one year
FIIs have withdrawn a total of $ 25 billion in the last one year, that is, money has been withdrawn from the Indian stock market. This period of FII selling has been the biggest since the global financial crisis. NSE’s Nifty fell three per cent on a month-on-month basis to 16,585 points in May. This was the second consecutive month of decline and the third major monthly decline after March 2020.
The condition of other stock markets including the Indian market
In May, the Indian market was included in the declining markets. The Indian market fell by three per cent, Russia by seven per cent and Indonesia by one per cent. On the other hand, China rose five percent, Brazil three percent, Japan two percent and Taiwan and Britain one percent each. During the last 12 months, MSCI India was up by 7 per cent while MSCI EM was down by 22 per cent.
status of sectoral index
Auto was up five per cent and consumer one per cent in the sectoral index. On the other hand, metals declined 16 per cent, utilities 11 per cent, oil and gas 10 per cent and real estate 7 per cent.
Market Capitalization of India – GDP Estimate
India’s market capitalization-GDP ratio remained volatile. It was 80 per cent in FY19, which came down to 56 per cent in March 20. Its long-term average is 79 percent, which has come down to 112 percent at present. This ratio is the highest since the calendar year 2007. Based on the estimated GDP growth rate for FY23, this ratio will remain at 98 percent.
According to Acuite Ratings, the tightening of monetary policy by the world’s major central banks has caused huge turmoil in the global stock markets, which is a matter of concern. For this reason, FIIs have remained constant sellers. This is increasing the pressure on the rupee. The rupee is already under pressure from the rising current account deficit.