Investors invest more in the stock market than FIIs

AHMEDABAD: The rise in the Indian stock market in the past has largely been attributed to FIIs, or foreign investors. But in the historic post-epidemic boom, domestic retail investors have outperformed foreign investors.

In pre-epidemic times, foreign investors were the main driving force behind the market boom. Then local financial institutions, Mu. Funds and then came the number of investors.

But the whole picture has changed since the epidemic. A large number of people from small and large cities of the country turned to the stock market as business was cut off due to the epidemic. Which has led to a significant increase in the demat account.

In addition to routine trading in the market by these new investors, there has also been a significant increase in the number of IPO outbursts that have become largely active in IPOs. Investors also benefited greatly from the listing of shares with IPOs.

According to the available data, the number of domestic investors has increased by 1.5 crore since April 1, 2031, which means that so many new investors have entered the stock market. Stock brokers say the decline in foreign and domestic institutional investment in recent days shows that retail investors are pushing the market higher.

Corona epidemics have played a big role in attracting small investors to the stock market, stock brokers said. A large number of retail investors are trading shares through their mobile phones. The average daily turnover of stock trading via mobile on the NSE has risen to 20.5 per cent from 10 per cent two years ago.

According to NSDL and CDSL figures, the number of demat accounts has increased to 70 million by the end of September 2021. More than 3 lakh new demat accounts were opened in the September quarter, indicating that investors are shifting from traditional sources of savings to the stock market.

Foreign portfolio investors (FPIs) have made a net investment of Rs 1,600 crore during the recent 5,000-point rally in the stock market, while in the last five 1,000-point gains, they have invested an average of Rs 2,000 crore each. So, domestic institutional investors have invested about Rs 1,200 crore in the stock market's 2,000-point rally and about Rs 2,000 crore since April 1, while FPIs have sold Rs 21,000 crore.

DII's Rs. 200 crore for sale

According to the data available on NSE. Between October 3 and October 30, local financial institutions (DIIs) raised Rs. 25 million (૧ 1.5 billion) was withdrawn. During March to September '71, Rs. 2.5 crore was invested.

Ongoing retreat in small midcap stocks

Small-midcap stocks continued to retreat on the Bombay Stock Exchange today on selling pressure from Chomer.

Today, the BSE Smallcap Index was down 19.60 points at 70.15. The BSE Midcap Index was down 2.4 points at 918.5. Shares of 21 smallcap stocks fell today.