FIIs buy shares worth Rs 3,040 cr on August 12, highest this month; net purchase at Rs 14,841.66 crore

As the Indian stock market extended rally to the sixth day, Foreign institutional investors (FIIs) bought shares worth Rs 3,040.46 crore in the cash market on Friday against a sell to the tune of Rs 839.45 crore by the Domestic Institutional investors (DIIs). FIIs remained net buyers in the cash market in August with a net purchase of Rs 14,841.66 crore between August 1 and 12. However, DIIs, which have been providing much needed support to the Indian market so far turned net sellers with Rs 4,243.78 crore sell this month.  

"The sentiments in the market have turned bullish due to the sustained buying by FPIs. FPIs turned net buyers in July and they have turned aggressive buyers in August buying on all sessions with a cumulative buy of Rs 18828 cr through stock exchanges up to 12th August. India is a preferred destination since India has the best growth prospects among large economies of the world," said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, adding FPIs have turned buyers in autos, capital goods, FMCG and telecom.   

The increase in the amount of money coming into the market has helped benchmark indices to rise sharply and rupee to appreciate against the US.  

On Friday, Sensex ended up 130.18 points or 0.22 per cent at 59,462.78, and Nifty closed 39.15 points or 0.22 per cent higher at 17,698.15.  

Whereas, at the interbank foreign exchange market, rupee ended at 79.66 against US dollar, as against 79.64 close on the previous trading session. 

Return of FIIs and declining dollar index aided the market rally on Friday, said Vinod Nair, Head of Research at Geojit Financial Services, on Friday. 

"While Metals and Oil & Gas garnered buying interest, IT and pharma weighed on sentiments. Oil and gas stocks were in focus as the government diverted some natural gas from industries to city gas operators in an effort to moderate the prices of CNG and piped cooking gas," he added.