Domestic Institutional Investors (DII) poured 1 lakh crore in the last two years. Not only this, it has been reported that DII poured Rs.7,000 crore in the month of April in order to help Sensex record a history-creating record.
From the news, it was heard that DII drove a rally in D-street in the year 2015 when the Sensex was at its peak level of 30,024.74 but in April 2017, with the flow of Rs.7,000 crore, DII helped Sensex to break its all-time records and create a history of 30,167.09.
Foreign Institutional Investors, considered as the powerhouse of Indian market poured Rs.40,000 in last two years. As per the tentative data, FII poured another Rs.5,000 crore in the month of April this year and continued to stay at the position of the net seller of the Indian market.
Domestic Institutional Investors contributed a small amount in the past and seeing their vast involvement and contribution, Indian markets have got a solid support when it comes to considering their favor in the equity market.
According to the observations of Chief market strategist of Geojit Financial Services, DDI involvement would strengthen Indian Market. FII being the powerhouse would support India to take big surges.
The main cause of rally driven by Domestic Investors was liquidity in the Indian market. The ratio of liquidity is comparatively higher when it comes to comparing funds and insurance companies with the competitors.
It is believed that most of the money and profits is coming from SIP plan of Mutual funds and the same trend is expected to continue in the near future as well.
According to the Senior President and CEO of Yes Securities of India, FII keeps withdrawing funds for organizing global events but DII have always withdrawn funds for the betterment of Indian market only. If DII continue to follow this trend, then no longer are those days when DII will become stronger than FII and stay in the market for the years to come.
No doubt, DII would strengthen over time but FII is also required to make long jumps and empower our nation with this government.