Foreign institutional investor (FII) ownership in Indian stocks has fallen to a 12-year low, dropping below 16%. This decline reflects cautious foreign sentiment towards Indian markets, potentially due to global economic uncertainties, interest rate hikes, and valuation concerns. Lower FII participation could affect market liquidity and valuation stability, underscoring the need for domestic institutional investors and retail participation to sustain market levels.
Indian Shares: FII Ownership Falls to 12-Year Low, Below 16%.
FII Holdings in Indian Stocks Hit 12-Year Low Amid Global Market Caution.
Foreign Investor Shareholding in India Drops Below 16%, Reaches 12-Year Low.
12-Year Low: FII Ownership in Indian Market Declines Below 16%.
Global Uncertainty Drives FII Ownership in India to 12-Year Low, Under 16%.
As of November 2024, recent data shows that Foreign Institutional Investors (FIIs) have been net sellers in the Indian stock market, while Domestic Institutional Investors (DIIs) have acted as net buyers. Specifically, FIIs have made significant sales across trading sessions, with daily net outflows ranging from approximately ₹500 to ₹7000 crores in recent weeks. In contrast, DIIs have been steadily purchasing, providing support to the market despite FII withdrawals.
These trends highlight contrasting investment sentiments: FIIs remain cautious due to global economic concerns and valuation issues, whereas DIIs have increased their purchases, likely aiming to sustain liquidity and market stability in light of the FII exit.
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