FIIs remain sellers for 3rd consecutive month, DIIs bought over Rs 1 lakh cr in FY20

Rising concerns over a global recession due to COVID-19 has kept foreign institutional investors (FIIs) net sellers for the third consecutive month in March 2020. Meanwhile, DIIs increased their equity participation.

After remaining net sellers in January and February, FIIs sold equities worth Rs 65,816.70, while domestic institutional investors (DIIs) bought equities of Rs 55,595.18 crore in March 2020.

In January and February, the FIIs sold equities worth Rs 5,359.51 crore and 12,684.30 crore respectively. The corresponding figures for DIIs were Rs 1,073.49 crore and Rs 16,933.03 crore, respectively.

"For the month of April, macro risk appetite driven by news flow around potential peaking of fresh COVID-19 cases would be the key driving force for foreign flows, while domestic funds continue to use the correction to increase equities allocation in dynamic asset allocation funds. Light positioning and thin volumes would lead to continued outsized moves in equity markets in both directions in the near-term," said S Hariharan, Head - Sales Trading, Emkay Global Financial Services.

In the financial year 2019-2020, FIIs sold equities worth Rs 90,043.54 and DIIs bought equities of Rs 1,28,208.24 crore.

However, FIIs remained buyers in 4 months, while DIIs remained sellers in 3 months in FY20.

The BSE Sensex and Nifty50 fell 23 percent each in the month of March. The BSE Smallcap, Midcap and Largecap indices have tumbled 30 percent, 27.6 percent and 23 percent, respectively.