Domestic institutional investors sold Rs 6,274 crore worth of shares over the past nine sessions

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Domestic institutional investors (DIIs) appear to have started taking profits off the table as market valuations get expensive near record highs.

Data available on company database AceEquity suggests that DIIs have sold Rs 6,273.94 crore net worth of shares over the past nine sessions as major stock indexes approach record levels. Overall, the institutional category was a net seller in eight of the last nine sessions.

During this period, foreign portfolio investors (FPIs) were net buyers of Rs 21,792 crore. Data shows they were buyers in eight of the previous nine sessions.

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FPIs have turned into buyers and DIIs into sellers in recent days, said VK Vijayakumar, chief investment strategist at Geojit Financial Services. DIIs are likely to sell at higher levels and many retail investors may be tempted to book some gains, he added.

Benchmarks Sensex and Nifty each rose nearly 1.5 percent this week.

On November 1, the 30-piece BSE Sensex crossed the 61,000 mark and the broader NSE Nifty touched 18,000. However, domestic indices have traded lower in the previous two sessions.

Geojit Financial Services’ Vijayakumar said there are two general trends (one negative and one positive) in the market right now. The negative trend is rising interest rates around the world, while rising FII inflow is clearly positive, and these two factors will keep the Nifty range bound with no breakouts or breakdowns in the short term, he added.

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Meanwhile, foreign investors turned short again in October amid a dovish stance from the US Federal Reserve and a sharp depreciation of the rupee. However, the move out was much lower than in September.

According to data available from custodians, FPIs sold Rs 8 crore net worth of shares in October. This comes after a net sell-off of Rs 7,624 crore in September; an investment of Rs 51,204 crore and Rs 4,989 crore in August and July respectively. Prior to that, FPIs were net sellers in Indian equity markets for nine consecutive months as of October 2021.

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