FIIs Offload Shares Worth ₹1,403 Crore, While DIIs Acquire ₹2,331 Crore

According to provisional data from the NSE, domestic institutional investors (DIIs) made net purchases of ₹2,331 crore worth of shares on November 18. On the flip side, foreign institutional investors (FIIs) sold shares, recording a net outflow of ₹1,403 crore during the same trading session.

Here’s how the numbers broke down: DIIs bought ₹11,521 crore worth of shares and sold ₹9,191 crore. Meanwhile, FIIs purchased equities worth ₹14,256 crore but sold ₹15,659 crore.

Looking at the bigger picture, year-to-date (YTD) data tells an interesting story—FIIs have net sold shares worth ₹2.84 lakh crore, while DIIs have been steady buyers, with net purchases totaling ₹5.54 lakh crore.

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Market Snapshot

The markets had a lackluster day on November 18, with the Sensex dropping 241 points (0.3%) to close at 77,339, and the Nifty falling by 79 points to end at 23,454. The market breadth showed a clear tilt toward the bears, with 1,560 stocks gaining, 2,361 declining, and 124 remaining flat.

Performance varied across sectors: IT, healthcare, and energy ended in the red, while metals, banking, and auto stocks delivered gains.

Here’s a quick look at the movers and shakers:

Top Losers: BPCL, TCS, Infosys, Trent, and Dr. Reddy's Labs.

Top Gainers: Hindalco, Hero MotoCorp, Tata Steel, HUL, and M&M.

India’s Equity Market Insights

India’s stock market has a unique strength—foreign institutional ownership is just 17%, making it one of the most insulated globally against potential risks like tariff policies. This "moat" against external shocks gives India a significant edge, according to CLSA’s insights shared on November 18.

At CLSA’s India Forum in Mumbai, Chief Equity Strategist Alexander Redman highlighted the growing influence of domestic investors. He noted, “India’s market momentum is unmatched, largely fueled by inflows into domestic mutual funds. These have offset $14 billion in net foreign outflows since September.” He also suggested that the ongoing market correction is a great chance for investors to pick up quality stocks.

Redman explained that India’s markets, in dollar terms, are now 12% below their peak, addressing concerns about overvaluation. Despite some lingering high prices, the correction has made the market more appealing. CLSA predicts a 16% dollar-based upside for Indian equities over the next year, with strong confidence (80%). Factors driving this include:

• Stable currency performance
   
• Rising money supply
   
• Improved U.S. ISM (Institute for Supply Management) numbers
   
• Robust industrial production growth at 6.5%.

What’s on Foreign Investors’ Minds?

While India’s high valuations have frustrated foreign investors, some dynamics are starting to shift. Redman acknowledged that many emerging market fund managers are underweight on India due to its premium pricing. However, global events—like weak fiscal policies in China and possible changes in U.S. leadership—might prompt FIIs to revisit India as a promising destination.

Shaun Cochran, CLSA’s Head of Research, said foreign investors are rethinking their strategies. He pointed out how domestic investment has created a “self-sustaining cycle,” fueling performance and attracting even more inflows. Historically, FIIs have prioritized markets like China, but India’s growth story and shifting valuation metrics are increasingly catching their attention.

Cochran also argued that traditional valuation methods don’t always do justice to India’s structural growth. “For instance, India’s high Price-to-Book ratio makes more sense when adjusted for growth and Return on Equity (ROE). Compared to long-term averages, the current premium is actually quite justified,” Redman added.

Cochran wrapped up by saying that as global growth and value funds adjust their strategies, India’s role in international portfolios will likely grow stronger over time.