Record ₹4.6 trn DII inflows fuel mkt's stellar leap in Samvat 2080

Domestic institutional investors (DIIs) have infused a record ₹4.6 trillion into Indian equities over the course of Samvat 2080, marking the highest net annual investment in any Samvat to date.

- DEEPAK KORGAONKAR & PUNEET WADHWA

This robust domestic inflow has effectively counterbalanced the comparatively subdued investments from foreign portfolio investors (FPIs), who contributed a net ₹90,956 crore within the same timeframe.

Against this backdrop, the Nifty 50 and BSE Sensex indices are on track to achieve their best performance in three Samvat years, despite recent market corrections.

Notably, the information technology (IT), automobile, pharmaceutical, power, and public sector enterprise (PSE) sectors have led the rally.

Since the Covid pandemic, there has been a structural change as to how retail investors approach the stock market, according to UR Bhat, co-founder and director at Alphaniti Fintech. "They are more comfortable investing directly and via mutual funds." "Mutual fund and insurance players are flush with investors' money, which they're actively channeling into the markets. This trend will sustain in Samvat 2081, too. FPI selling, on the other hand, is purely tactical and is likely to reverse soon," he said.