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India’s stock market is becoming self-reliant. The stake of domestic investors has increased to 18.26%, while the stake of foreign investors has come down to 16.71%. Investment in mutual funds has increased. Foreign investors have shown interest in IPOs, but the Indian market is more stable and strong now.
New Delhi. India is becoming self-reliant and with this the stock market has also reduced its expectations from foreign investors. The stock market is now moving forward with the help of domestic investors. Statistics say that this difference in the September quarter has become the highest in the last 25 years. 25 years. This means that now the common investors of India and the mutual fund companies of the country are together strengthening the market.
According to the latest data, the stake of domestic institutional investors (DIIs) in all the listed companies of NSE has increased to 18.26 percent, which is the highest level till date. At the same time, the share of foreign investors (FII) has come down to only 16.71 percent, which is the lowest in the last 13 years. It is clear from this picture of the data that now Indian investors have become owners of more shares than foreign investors.
People’s confidence in mutual funds increased
A major reason behind this change is that people’s trust in mutual funds is continuously increasing. Every month people are investing money through SIP (Systematic Investment Plan) at a record level. For this reason, the share of mutual funds has increased to an all-time high of 10.9 percent in this quarter. In contrast, foreign investors sold shares worth about Rs 1.02 lakh crore between July and September, while Indian investors bought shares worth Rs 2.21 lakh crore during the same period.
Sriram Velayudhan, Senior Vice President, IIFL Capital Services Limited, says that foreign investors have recently turned to markets like America, China, Taiwan and Korea, because they see better opportunities there. But the Indian market has now become more self-reliant than ever before. Earlier, when foreign investors used to withdraw money, the market used to fall, but now the confidence of domestic investors is maintaining the market.
Foreign investors showed interest in IPOs
In fact, Indian investors are now giving priority to long-term investments in companies, while foreign investors prefer to invest money in fast-yielding markets. This is the reason why foreign investors may be moving with some caution in the secondary market (where the buying and selling of listed shares takes place), but they have shown interest in recent IPOs i.e. share launches of new companies. In the month of October, foreign investors invested more than Rs 10,700 crore in IPOs, which is the second highest figure this year.
Although foreign investors still consider Indian shares expensive, but experts believe that as soon as the market declines a bit or prices stabilize, they can invest again in large quantities. At the same time, due to the continued confidence of domestic investors, the Indian market has become more stable and stronger than before.
