₹1,973.06, the highest in 2020. This marks a complete reversal of DII flows, from a record purchase of ₹55,595.18 crore in March, when benchmark indices had slumped over 20% after the government imposed a nationwide lockdown to contain the spread of the deadly coronavirus.However, despite a large exodus of DII money in June, markets have remained 4% higher in the month.
Around $2.8 billion foreign institutional investor (FIIs) money has come into the markets, helping keep liquidity intact.In June, the benchmark Sensex is up 4% while MSCI Emerging Markets index gained 6%.
However in 2020 so far, Sensex is down 18% while MSCI EM index is down 5.5%.The DII sell-off in June can be attributed to profit booking, said Harish Krishnan, Fund Manager.