Nifty remained positive on 6 occasions in August over past decade; FIIs & DIIs net buyers on seven counts

Nifty has crossed the historic milestone of 25,000 on the first day of August, and to add to the bullish sentiment, its track record of the full month over the last 10 years shows positive closing on six occasions. Moreover, foreign institutional investors (FIIs) and domestic institutional investors (DIIs) have been net buyers on seven counts, each.

Between 2014 and 2023, the 50-stock index delivered a positive closing in 2014, 2016, 2018, 2020, 2021, 2022 while negative closings were recorded in 2015, 2017, 2019 and 2023.

The highest positive returns were in 2021 at 8.7% followed by 2022 (3.5%) and 2014 (3%). Meanwhile, the worst performance has been in 2015, when Nifty fell by 6.6%. In 2017, 2019 and 2023 the declines have been to the tune of 1.6%, 0.9% and 2.5%, respectively.

ETMarkets.com

Source: Ace EquitiesIn the last 10 Augusts, FIIs were net buyers in 2014, 2016, 2018, and 2020-2023. They were net sellers in 2015, 2017 and 2019. As for the DIIs, they were net purchasers in 2014, 2015, 2017-2019, 2021 and 2023 while remaining net sellers in 2016, 2020 and 2022.

The highest buying was in August 2022 at Rs 51,204 crore followed by Rs 47,080 crore in 2020. In both these years, DIIs were net sellers at Rs 7,069 crore and Rs 11,047 crore, respectively.

Chart 2 (7)ETMarkets.com

Source: Ace Equities

The FIIs were most conservative in August 2018, when they bought Indian equities worth Rs 1,775 crore. The next lowest was Rs 2,083 crore in 2021 followed by Rs 5,430 in 2014.

Highest buying by the DIIs was in 2023 and 2019 when they bought shares worth Rs 32,763 crore and Rs 20,934 crore, respectively. In 2015 and 2017, they bought equities worth Rs 16,248 crore and Rs 16,205 crore, respectively. Yet the Nifty ended in the red on both the occasions because FIIs chose to pull out money from the domestic markets.

Nifty’s beginning of August was on an optimistic note as the headline index hit the 25,000 mark for the first time, ever. The trade however remained rangebound.

(Data inputs: Ritesh Presswala)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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