Impact of institutional investment on NIFTY (FII & DII – NIFTY)

It is a generally accepted and recognized theory that FIIs and DIIs can influence the NIFTY. In this article an attempt is made to understand the impact made by the institutional investors since April 2006 to Feb 2015.
Purchases and Sales data of FIIs and DIIs in the past eight years since 2007-2008 (2014-15 till Feb) is given below:Impact of institutional investment on NIFTY (FII & DII – NIFTY)


Birds eye inferences from the above table are :

• FII have remained “net purchasers” since 2009-10
• DII have remained “net sellers” since 2010-11

It would be interesting to compare the above data with how NIFTY has performed during the check period. Given below is the April (open) to Mar (close) values for the period.


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