Latest news with #DIIs
Mint
a day ago
- Business
- Mint
DIIs pump record ₹3.60 lakh crore into Indian stock market in H1 2025
Domestic institutional investors (DIIs), which largely comprise mutual funds, have pumped record inflows into the Indian stock market in the first half of 2025, continuing to acquire local equities at a rapid pace amid robust retail investor participation. They bought Indian equities worth ₹ 3.57 lakh crore in H1 2025, marking the strongest-ever half-yearly inflows, achieving 68% of the full-year inflow of ₹ 5.26 lakh crore recorded in 2024, and nearly double the ₹ 1.81 lakh crore inflow seen in 2023. DIIs began the year by aggressively acquiring shares worth ₹ 86,591 crore in January, followed by another ₹ 64,853 crore in February. While inflows softened over the next two months, they picked up pace again in May and June, with ₹ 67,642 crore and ₹ 72,673 crore, respectively, largely driven by a surge in block deals. As DIIs continue to expand their portfolios, foreign portfolio investors (FPIs) remained net sellers, pulling out ₹ 1.3 lakh crore from the Indian stock market in the first half of 2025. Though they turned net buyers over the last three months, the aggressive selling during the first quarter of 2025 more than offset the recent inflows, keeping their overall stance negative for the year so far. However, the impact on the market has been limited, with both the Nifty 50 and Sensex gaining over 7% during the same period. The robust DII inflows not only cushioned the impact of FPI outflows but also led to a significant shift in institutional holdings across India Inc. DII ownership in the March 2025 quarter rose by 160 basis points year-on-year (YoY) to an all-time high of 19.2%, up from 17.6% in March 2024. In contrast, FII ownership fell by 40 basis points YoY to an all-time low of 18.8%, down from 19.2% in March 2024. Retail investors have been actively shifting their savings from traditional bank deposits to equities in recent years, aiming to participate in India's growth story, with the majority opting for the mutual fund route to gain ownership in listed companies. This participation has not only broadened the investor base but also provided a strong foundation for the market, encouraging many companies to raise funds through the stock market to capitalize on ongoing domestic demand. This process has expanded the overall size of the Indian stock market, which recently surpassed Hong Kong to become the fourth largest globally. At times, the steady inflows have even forced fund managers to pause or slow down SIP investments, as they found themselves running out of viable allocation opportunities. In May, the assets under management (AUM) of mutual funds crossed ₹ 70 lakh crore for the first time (as per AMFI), which is 31% of the total deposit base of Indian banks ( ₹ 227.4 lakh crore). According to market experts, DII inflows into the Indian stock market are expected to remain strong through the rest of 2025, as mutual fund investments continue to gain momentum with India emerging as a bright spot in the global economy.
Mint
a day ago
- Business
- Mint
DIIs pump record ₹3.60 lakh crore into Indian stock market in H1 2025
Domestic institutional investors (DIIs), which largely comprise mutual funds, have pumped record inflows into the Indian stock market in the first half of 2025, continuing to acquire local equities at a rapid pace amid robust retail investor participation. They bought Indian equities worth ₹ 3.57 lakh crore in H1 2025, marking the strongest-ever half-yearly inflows, achieving 68% of the full-year inflow of ₹ 5.26 lakh crore recorded in 2024, and nearly double the ₹ 1.81 lakh crore inflow seen in 2023. DIIs began the year by aggressively acquiring shares worth ₹ 86,591 crore in January, followed by another ₹ 64,853 crore in February. While inflows softened over the next two months, they picked up pace again in May and June, with ₹ 67,642 crore and ₹ 72,673 crore, respectively, largely driven by a surge in block deals. As DIIs continue to expand their portfolios, foreign portfolio investors (FPIs) remained net sellers, pulling out ₹ 1.3 lakh crore from the Indian stock market in the first half of 2025. Though they turned net buyers over the last three months, the aggressive selling during the first quarter of 2025 more than offset the recent inflows, keeping their overall stance negative for the year so far. However, the impact on the market has been limited, with both the Nifty 50 and Sensex gaining over 7% during the same period. The robust DII inflows not only cushioned the impact of FPI outflows but also led to a significant shift in institutional holdings across India Inc. DII ownership in the March 2025 quarter rose by 160 basis points year-on-year (YoY) to an all-time high of 19.2%, up from 17.6% in March 2024. In contrast, FII ownership fell by 40 basis points YoY to an all-time low of 18.8%, down from 19.2% in March 2024. Retail investors have been actively shifting their savings from traditional bank deposits to equities in recent years, aiming to participate in India's growth story, with the majority opting for the mutual fund route to gain ownership in listed companies. This participation has not only broadened the investor base but also provided a strong foundation for the market, encouraging many companies to raise funds through the stock market to capitalize on ongoing domestic demand. This process has expanded the overall size of the Indian stock market, which recently surpassed Hong Kong to become the fourth largest globally. At times, the steady inflows have even forced fund managers to pause or slow down SIP investments, as they found themselves running out of viable allocation opportunities. In May, the assets under management (AUM) of mutual funds crossed ₹ 70 lakh crore for the first time (as per AMFI), which is 31% of the total deposit base of Indian banks ( ₹ 227.4 lakh crore). According to market experts, DII inflows into the Indian stock market are expected to remain strong through the rest of 2025, as mutual fund investments continue to gain momentum with India emerging as a bright spot in the global economy. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Time of India
2 days ago
- Business
- Time of India
Analysts see bright FY26 with strong DII support and renewed FPI interest
Mumbai: Domestic institutional investors (DII) have intensified buying in the equity market in the first six months of 2025 compared with the corresponding period in the previous year whereas their overseas counterparts ( FPIs ) continued to be net sellers during both periods. DIIs have bought shares worth over ₹3.5 lakh crore so far in 2025 compared with ₹2.4 lakh worth of purchase in the first six months of 2024. FIIs on the other hand were net sellers of ₹1.2 lakh crore worth of Indian equities in each of the periods. In January and February, foreign investors remained aggressive sellers in Indian equities close to ₹1.5 lakh crore until the tide turned in March amid easing interest rate cycle and tax boost by the government in the Union Budget that renewed buying interest in the market. Agencies Analysts said steady and gradual foreign inflows are likely in the next few months as India is attractively placed within emerging markets due to improved market conditions while domestic investors are expected to continue pumping in money into the markets. The trajectory for FY26 is now expected to be better given that the government and RBI are both pro-growth and the earnings concern is already priced in which is a positive signal for both foreign and domestic investors," said Neeraj Chadawar at Axis Securities. In June, both foreign and domestic investors remained buyers worth ₹7,488.98 crore and ₹72,673.9 crore, respectively, driving benchmark Nifty 3.1% higher in the month.
Mint
2 days ago
- Business
- Mint
Indian stock market: Sensex, Nifty 50 rise for fourth straight month as financials, tech lead; gain 17% from April lows
Indian stock market today: The Indian stock market ended the last trading session of June in the red, as investors booked profits following the strong rally seen over the previous four sessions. Nevertheless, the market closed the month in the green for a fourth consecutive time, with the Nifty 50 ending up 3.10% and the Sensex rising 2.65%, pushing the four-month cumulative gains for both indices to over 15%. Impressively, both indices have recovered nearly 17.3% from their April lows, which is the best turnaround performance in the recent past. June can be broadly divided into two distinct halves. The first half was dominated by bears, dragging frontline indices to one-month lows. However, the momentum shifted in the second half, as positive global cues and the return of foreign portfolio investors (FPIs), joining robust domestic inflows, helped markets recover and reverse early losses. Easing tensions in the Middle East, which also triggered a sharp fall in crude oil prices, combined with the US dollar index dropping to a three-year low, has prompted overseas investors to shift their focus back to Indian equities. On Thursday, foreign investors pumped ₹ 12,594 crore into the Indian stock market, the same day when the US dollar plummeted to the lowest level since February 2022. On Friday, they continued to remain net buyers, infusing another ₹ 1,400 crore. This shift in sentiment has turned them into net buyers for the month of June, with total inflows so far standing at ₹ 8,320 crore. While the FPIs inflows remain fluctuating throughout the month, DIIs, largely led by the mutual funds continue to acquire the local equities at a rapid pace, providing cushion to the overseas investors selling. In the current month, DIIs have added over ₹ 60,000 worth of stocks. The June rally saw a shift in investor sentiment to more fundamentally strong large-cap stocks as they appear to find valuations in this segment more reasonable compared to mid- and small-cap stocks, which are trading at expensive multiples. Large-cap banks, in particular, have remained in the spotlight throughout the month as the RBI's ongoing efforts to revive credit demand by injecting more liquidity into the system have driven significant interest toward these counters. In addition, NBFC stocks have also attracted interest, boosted by the RBI's surprise 50 basis point cut in the repo rate and a 100-basis point reduction in the CRR, driving expectations that these measures could help in driving a sharp surge in vehicle and consumer durable loans. Moreover, the increase in the loan-to-value (LTV) ratio for gold loans has fueled a rally in gold-focused NBFCs, while the rate cuts have also sparked gains in real estate stocks. Overall, the RBI has provided a much-needed policy boost to the Indian stock market. Apart from the rate-sensitive stocks, tech stocks have also supported the indices to stay higher, with Nifty IT ending the month with a solid gain of 4.36%, building on a 4.3% gain in May. Among the top performers that powered the Nifty 50 higher for a fourth straight month was Jio Financial Services, which emerged as the index's top gainer with a 14% rise, driven by multiple developments that boosted demand for the stock in the Indian market. Zomato was another notable gainer, jumping over 10%. Despite rising competition in the food delivery and quick commerce space, investors continue to see the company as strongly positioned to withstand the pressure. Grasim Industries made a strong comeback in June, gaining nearly 7%, while Trent extended its winning streak to a third consecutive month, adding another 10% to its ongoing rally. Bharti Airtel shares also delivered an 8% gain during the month, crossing the ₹ 2,000 mark for the first time. Overall, 37 Nifty 50 stocks closed the month in the green, according to Trendlyne data. As the Indian stock market ended in the green for the fourth straight month, the sustainability of the rally now hinges on upcoming global developments, with tariffs taking center stage. The 90-day reciprocal tariff suspension announced by U.S. President Donald Trump in April is nearing its end. There had been growing expectations that Trump might extend the pause by a few more months. However, he downplayed media reports suggesting an extension. On Sunday, he stated that he has no plans to prolong the 90-day suspension beyond July 9, the deadline set for trade negotiations, and that his administration will begin notifying countries that trade penalties will take effect unless agreements are reached. 'Letters will start going out pretty soon,' Trump said, referring to the upcoming deadline. 'We'll look at how a country treats us—are they good, or are they not so good? Some countries we don't care about; we'll just send a high number out,' Trump told Fox News Channel's Sunday Morning Futures during a wide-ranging interview taped Friday and aired Sunday, according to the Associated Press. Those letters, he said, would include messages like, 'Congratulations, we're allowing you to shop in the United States of America. You're going to pay a 25% tariff, or a 35%, or a 50%, or 10%.' Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Hans India
3 days ago
- Business
- Hans India
Global trends to drive near-term market mood
A bottom-up strategy focused on margin mean-reversion and undervalued laggards is advisable MARKET KHABREIN Stock selection should favour low-margin, low-valuation names with potential for cost-driven earnings recovery. Caution persists regarding potential tariff escalations, with US tariffs scheduled to resume from July 9 and focus will shift to trade agreements Quote of the week Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas —Paul Samuelson Buoyedby easing geopolitical tensions, supported by improving global sentiment, renewed buying interest from FIIs and sharp pullback in international crude oil prices; markets finally broke out of their five-week-long consolidation phase. The rebound followed a cautious start, with broader participation seen from midweek as sentiment turned positive. For the week, the Sensex index rose 1,650.73 points or 2 percent to end at 84,058.90, and the Nifty added 525.4 points or 2.09 percent to close at 25,637.80. Mild exuberance was evident in the broader market with both the BSE Mid-cap and the BSE Small-cap indices gaining more than 2 percent and 3.5 percent respectively. Reversing the four-week losing streak, the IndianRupee ended 110 paise higher at 85.49 per dollar. FIIs extended their buying in second week with purchases worth Rs 4,423 crore. DIIs continued their buying in tenth consecutive week buying equities worth Rs 12,390.17 crore. Nine of the top-10 most valued firms together added Rs 2,34,565.53 crore in market valuation last week, with Reliance Industries emerging as the biggest gainer, in line with a buoyant trend in equities. With progress of monsoon a bit tardy, high frequency data points IIP and PMI figures will be in focus. A significant volume of pre-IPO shareholder lock-ins worth $ 1,860 million is set to expire in July 2025, potentially reshaping the shareholding structure of several recently listed companies. Such expiries are closely watched by market participants, as they can lead to changes in liquidity, free float, and shareholding patterns in the post-IPO phase. Corporate India's profitability is currently hovering near decade-high levels, and with scope of margin expansion muted, some experts believe sustaining this momentum may prove challenging. Post-Covid profits were led by restructuring, but margins are now peaking, and demand remains weak. Valuations are expensive across sectors despite slowing earnings, posing downside risks say observers. A bottom-up strategy focused on margin mean-reversion and undervalued laggards is advisable. Stock selection should favour low-margin, low-valuation names with potential for cost-driven earnings recovery. In the near term, global cues will continue to drive market direction. Despite improved sentiment expect the unexpected speed breakers from Trump tantrums. Caution persists regarding potential tariff escalations, with US tariffs scheduled to resume from July 9 and updates on trade agreements will remain in focus. The passage of Trump's massive tax and spending bill in the Senate, moving the legislation one step closer to final approval may cast its shadow on US equities. Despite noise in social media that US-China trade deal is on cards, China has reiterated opposition to any trade deals at its expense. Watch developments on this front. If you think investing is gambling, you're doing it wrong. The work involved requires planning and patience. However, the gains you see over time are indeed exciting. FUTURES & OPTIONS / SECTOR WATCH Tracking the cease fire news in the Middle East, the Indian market rallied during the week ended. Both Nifty and Bank Nifty registered weekly gains of more than 2%. On the expiry day, the Nifty futures finally staged a decisive breakout from the recent prolonged consolidation phase and ended the June series above the 25,500 mark, registering a healthy gain of 2.69%. This breakout not only signals a potential shift in short-term sentiment but also sets a positive tone for the July series. The Nifty rollover rate remains steady at 79.53%, nearly unchanged from last month's 79.10% and slightly above the three-month average of 78.09%, indicating similar momentum for the July series. In contrast, Bank Nifty rollover stands at 75.75%, lower than last month's 79.29% and below the three-month average of 77.11%, suggesting weaker momentum compared to the previous series. Nifty rollovers indicate that positions were carried forward around the 25,200–25,300 futures range, while the Bank Nifty rollover range is 56,600–56,700 level. In the options segment, the highest Call open interest was seen at the 26,000 and 25,900 strike levels, whereas Put writing was prominent at the 25,500 strike. Implied volatility (IV) for Nifty's call options settled at 11.87%, while put options concluded at 12.57%. The India VIX, a key indicator of market volatility, concluded the week at 12.59%. The Put-Call Ratio Open Interest (PCR OI) stood at 1.28 for the week. Failure to sustain the 25,200-25,300 level on Nifty and 56,600-56,700 level on Bank Nifty may lead to a decline in both indices. For the upcoming sessions, Nifty has support at 25200 level whereas resistance is placed at 26000 level. Stocks looking good are Kotak Bank, IRCTC, JSW Steel, MGL, Naukri, Shriram Finance, Tata Steel and Unominda. Stocks looking weak are Blue Star, IREDA, KPIT, Lodha, Mannapuram, Nykaa and NTPC. (The author is a senior maket analyst and former vice-chairman, Andhra Pradesh State Planning Board)
