After FIIs (Foreign Institutional Investors) ending as net buyers at Indian stock markets in last two sessions, Dalal Street is buzzing with speculations whether market has bottomed out and foreign investors may start their shopping when the market opens on Monday after an extended weekend. However, their main concern is DIIs (Domestic Institutional Investors), who have gone defensive after recent selloff caused by Russia-Ukraine war. Signaling strong rebound once there is ease in geopolitical tension, ace investor Vijay Kedia has said that 'real game' will begin when both DIIs and FIIs turn into net buyers.

Vijay Kedia expressed his views from his twitter handle citing, "The Real game will begin when #FIIs turn into buyers and #DIIs instead of turning into jobbers (as in the past), will continue to be buyers."

Despite DIIs buying in bulk, FIIs have remained net sellers in the Indian stock market since October 2021. In March 2022, FIIs have bought shares worth Rs121,023.61 crore where they sold out shares worth 162,640.79 crore in this period. So, FIIs have remained net seller in March 2022 as they have fished out Rs41,617.18 crore from the Indian secondary market in March 2022. However, in last two days, FIIs have ended up as net buyers. On 16th March 2022 they have invested Rs311.99 crore whereas on 17th March 2022 they have pumped Rs2800.14 crore in Indian secondary market.

Compared to FIIs, in March 2022, DIIs have bought shares worth Rs113,271.75 crore whereas they sold out shares worth Rs81,651.73 crore. This means DIIs have pumped Rs31,620.02 crore in Indian markets ending up as net buyers. DIIs have put Rs42,084 crore in February 2022, Rs21,928 crore in January 2022, Rs31,231 crore in December 2021 and Rs30,560 crore in November 2021 respectively.

Speaking on FIIs trade pattern; Santosh Meena, Head of Research at Swastika Investmart Ltd said, "FIIs who were selling relentlessly for the last five months comeback last week with some buying and it will be interesting to see how the market will perform when they continue their buying. In the last 5 months, they have sold more than 2.3 lac crore in the Indian equity market which is their higher ever selling. Earlier, their highest selling was at the time of the global financial crisis in 2008 which was around 1.3 lac crore. The interesting point here is that in 2008, Nifty and Sensex had corrected 60-65 per cent due to selling of 1.3 lac crore by them but this time, Nifty and Sensex only corrected around 15 per cent despite much higher selling by FIIs. Domestic money shows strong resilience this time and we are no longer fully dependent on FIIs' flows."

Santosh Meena of Swastika Investmart went on to add that Indian secondary market is in much better shape compared to most of the emerging markets. "As we have witnessed a strong rally from lower levels therefore there might be some feeling of missing out among FIIs and they may come back aggressively in the Indian markets that may fuel a further rally in our market. If we look at the derivative data then FIIs' long exposure in the index future has moved to 57 per cent and the put-call ratio has jumped to 1.33 level, both are indicating bullish positioning of the market. If we look at the OI distribution then put writers are showing strong confidence at the 17000 level.," he concluded.

Last week, NSE Nifty started on a positive note and surpassed the hurdle of 16800 on Monday. Post some minor profit booking in mid-week, the index resumed the momentum and ended around the 17000 mark ahead of the Fed event. The resistance was broken with a gap up opening which led to a broad based participation and Nifty ended the truncated week tad below 17300 with weekly gains of almost 4 per cent. BSE Sensex too ascended around 4.15 per cent last week and ended at 57,863 levels. Nifty Bank index logged 5.44 per cent weekly gain and ended at 36,428 levels.