Foreign Institutional Investors crutch no longer needed for new rise

Jaipur: This week the Indian stock markets have once again reached their highest level. The mood changed again for the foreign institutional investors (FIIs) who had made purchases last week and FIIs also made a big sale of Rs 10081.08 crore, but the Domestic Institutional Investors (DIIs) also responded to this selling by purchasing Rs 10129.17 crore. Despite the selling by FIIs, the Indian stock market again managed to touch new highs in the week ending on Thursday. The selling of FIIs can also be understood as the fact that there is no longer any special need for new investments from FIIs for the Indian stock markets to move forward. Indian investors are also now putting their trust in the stock market considering the pace of the country’s economy and those who invest smartly instead of following hearsay and constantly keep an eye on their investments are also earning. For those who do not have time to manage shares after buying them, Systematic Investment Plan i.e. SIP is proving to be a good medium. The figures for February 2024 are proof of this. In the month of February, investment in SIP through mutual funds crossed Rs 19186.58 crore for the first time, which was only Rs 18838.33 crore in the month of January. The number of SIP accounts also continued to increase in February and it increased by 49.79 lakh to reach 820.17 lakh. Figures can be boring, but the truth is that crores of rupees are continuously coming into the stock market through SIP and this is the main reason for the continuous rise in the market.

Regarding the market trend this week, traders say that the market looks strong in the long term. According to traders, for long-term investment, investment in selected listed shares of Tata Steel, State Bank of India, SAIL, Jio Finance and public sector undertakings can be considered safe even during this time. This week, market sentiment influenced Popular Vehicle and Service and Crystal Integrated Service Ltd. IPOs. Five new SME platform IPOs are open for investors. It’s crucial to assess company finances and IPO premiums before investing. Additionally, Segal India Ltd. filed its draft prospectus (DRHP), and Viraj Iron and Steel Ltd. revised its DRHP among new IPO applications submitted to SEBI.

The views expressed by the author are his own.