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Charts & Analysis

FII Flows Negative For 2011, DIIs Cushion Fall

Foreign Institutional Investor (FII) data for 2011 is deeply negative – over 11,000 crores have left our cash markets.

FII Net Purchases Cumulative

Domestic institutions have done the exact opposite, as you can see from a plot of the daily net values:

FII and DII Buys

If you look at cumulatives, and invert the FII numbers (that is, negative numbers are positive), here’s the graph:

FII and DII buys (Cumulative)

Our fall has been cushioned by domestic institutions. For all the screaming about lack of volumes, more than 19,000 cr. has been invested by domestic institutions. Despite a net institutional buy of 8,000 cr. (positive) we have seen the indexes fall about 18% for the year. Does this mean that everyone else – Retail, prop accounts, HNIs – are running for the hills?

  • MA says:

    Great insight, there is a 68% co-relation between cumulative FII Inflow and Nifty index. Have taken inspiration from your post to compute the co-relation

  • Jagadees says:

    Domestic institutions like SBI and LIC are buying heavily in the current downfall. It is not known whether these institutions are buying under the direction of govt to cushion the downfall or they really feel that it is time to buy??? there is an article from WSJ’s shefali anand on aug 10 observing this trend.