Coronavirus effect: FIIs pull out record Rs 54,232 crore in March, DIIs come to rescue

Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) have indulged in record sale  and purchase of shares as Sensex and Nifty hit record lows in March. Benchmark indices tanked as fears of growing coronavirus cases abroad and at home weakened market sentiment.

FIIs withdrew Rs 54,232 crore from Indian equities this month, the highest ever, in search of safe havens for their funds.

On the other hand, DIIs infused Rs 45,243 crore into Indian market in March. 

On March 23, when Sensex and Nifty logged their biggest losses in the history, FIIs took out Rs 3,515 crore from Indian market. In the same session, benchmark indices Sensex lost 3,934 points at 25,981 and Nifty fell 1,135 points to 7,610.

However, that was not their highest sale in Indian markets this month.

On March 9, they sold equities worth Rs 6,595 crore, their highest withdrawal in March.

On the same day, Sensex and Nifty declined 1,941 points and 538 points respectively, clocking huge losses as rising cases of coronavirus and fall in crude oil price threatened to lock down the global economy.

While FIIs were leaving Indian markets affecting benchmark indices and rupee, DIIs such as LIC, public sector insurers and PSUs among others were infusing funds into equities to cap losses in Sensex and Nifty.

On March 23, DIIs bought shares worth Rs 1,082 crore managing to cap Sensex's loss below 4,000 points.

But this was not their highest infusion into Indian market. On March 13, they put Rs 5,867 crore into Indian equities. In this session, DIIs came into action after Nifty hit lower circuit of 10% in early trade and trading was halted on BSE and NSE for 45 minutes. Nifty, which hit the circuit breaker of 10% plunged 966 points to 8,625 in early trade.

Similarly, Sensex plunged 3,090 points or 9.43%.

After trading began, Sensex and Nifty logged their biggest intra day recovery. While, Sensex gained 5,431 points from its intra-day low of 29,388, Nifty zoomed 1,604 points from day's low of 8,555.

With DIIs recording their largest fund infusion in March, Sensex closed 1,325 points or 4.04% higher at 34,103 after a 3,390 points fall intra day in the same session.