The Indian stock market is continuously getting robust support from domestic investors as it sustains the bull run for the past month, highlighted the National Stock Exchange (NSE) data.
The NSE data pointed out that the domestic institutional investors (DIIs) made net purchases exceeding Rs 28,633 crore last month. This sustained buying trend from DIIs has been ongoing since July of the previous year, marking a significant period of domestic investment. Notably, July of the previous year was the last month DIIs were net sellers in the Indian markets.
The data indicates that in June, DIIs infused Rs 28,633 crore into the Indian stock markets. In contrast, foreign institutional investors (FIIs) demonstrated more modest activity, with a net purchase of only Rs 2,037 crore for the same month. This comes after FIIs offloaded a substantial Rs 42,214 crore in May.
The disparity between domestic and foreign investment highlights the critical role DIIs have played in supporting and driving the Indian stock market.
The investment trends continue to be promising in the current month. Within the first three days, FIIs have invested a net amount of Rs 3,057 crore, while DIIs have infused Rs 3,641.25 crore. This dual support from both domestic and foreign investors has contributed significantly to the bullish sentiment prevailing in the market.
Market experts attribute the current bull run in the Indian stock markets to this combined buying effort. The infusion of funds from both domestic and foreign investors has created substantial momentum, leading to the Sensex breaching the 80,000 mark.
During the current rally, the market experts advised the retail investors to be cautious and make investments in quality companies. For the retail investors, the experts also suggested a strategy to have a safe investment.
“For retail investors the best way to invest is twofold, invest a fixed sum every month in the markets in a diversified, quality portfolio, and secondly, stay invested irrespective of market noise and turbulence. Over the long term this is the best format for retail investors. Market timing does not work for the 99.9999 per cent of us. Don’t try it. Boring, dull is good. Let your money compound. Quality companies will generate good earnings which will translate into higher stock prices for them” said Ajay Bagga, Banking and Market Expert.
He also added “Invest according to your risk appetite, financial goals, and time horizon, keep enough cash to cover 2 years of expenses, have 10 years of expenses as Life insurance, and have medical insurance with a floater for unforeseen critical illness for the entire family. Then you are set for life and your children and grandchildren will applaud you decades later for your sagacity. Persevere and Compound”.
