FIIs Sell ₹5,610 Crore In 3 Sessions, DIIs Pour ₹23,160 Crore Into Indian Stocks Despite Market Fall
Mumbai: Foreign institutional investors r emained cautious on Indian equities last week, emerging as net sellers in three of the five trading sessions, while domestic institutional investors continued to provide strong support to the market. FIIs sold Indian equities worth Rs 5,610 crore during the week, marking their third consecutive week of net selling. In contrast, DIIs were net buyers in all…
In the week leading up to the MSCI index rebalancing on August 31, Foreign Institutional Investors (FIIs) demonstrated their cautious stance towards Indian equities, emerging as net sellers across three of the five trading sessions. Conversely, Domestic Institutional Investors (DIIs) continued their pattern of strong support, purchasing shares worth Rs 23,160 crore during all five sessions.
This marked the third week of consecutive selling by FIIs and an ongoing buying streak by DIIs, highlighting a notable divergence between foreign and domestic institutional flows.
Pabitro Mukherjee, Deputy Vice President Research at Bajaj Broking, pointed out that FIIs maintained their sell side position for the third consecutive week, while DIIs extended their buying momentum. Despite the pressure from persistent foreign selling and a decline in benchmark indices, domestic liquidity proved instrumental in cushioning the market's overall performance.
The Indian markets experienced a downward trend for the fourth consecutive week due to geopolitical tensions in West Asia causing crude oil prices to surge, which adversely affected investor sentiment. However, the broader market sentiment did not remain uniformly weak, as selective buying persisted, particularly in certain small cap shares.
The Nifty 500 witnessed an end-of-week decline of 1.2 per cent, after gaining from its weekly lows following lower index levels. The Nifty Midcap index declined by 1.5 per cent amid profit-taking activities, while the Nifty Smallcap index managed a slight gain of 0.1 per cent throughout the week.
On Friday, the market showed signs of recovery, driven by metals, insurance, and selected financial stocks, indicating that investors remained inclined to purchase sectors displaying stronger relative performance. The Sensex and Nifty both rose early in the trading session as FIIs shifted from being net sellers to net buyers, and the crude oil prices eased.
Investors are expected to monitor FII flows, crude oil prices, the movement of the rupee, and domestic liquidity closely for insights into the future direction of Indian equities.
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