FIIs Turn Net Sellers Again, Domestic Investors Keep Indian Markets Supported

New Delhi: Foreign Institutional Investors (FIIs) returned to selling in the Indian equity markets this week after emerging as net buyers in the previous week, while strong buying by Domestic Institutional Investors (DIIs) continued to provide stability to the market.

According to provisional exchange data, FIIs sold equities worth Rs 2,080 crore during the week. In contrast, DIIs remained aggressive buyers, investing Rs 11,100 crore and helping cushion the impact of foreign outflows.

So far in June, FIIs have offloaded shares worth Rs 45,130 crore, while DIIs have made cumulative purchases of Rs 76,160 crore, highlighting the growing role of domestic investors in supporting market sentiment.

Advertisement

Advertisement

Advertisement

Pabitro Mukherjee, Deputy Vice President – Research at Bajaj Broking, said FIIs were net buyers in two of the four trading sessions during the week, whereas DIIs remained consistent buyers throughout all four sessions.

The benchmark indices traded within a narrow range and ended the week marginally higher, extending their winning streak to a third consecutive week.

Market sentiment improved as geopolitical tensions eased and Brent crude oil prices declined below $75 per barrel, reducing inflation concerns and encouraging investor confidence. However, the slow progress of the southwest monsoon continued to remain a concern and limited further gains in the market.

Indian equities also witnessed modest foreign inflows during the week ended June 25, with provisional data showing net FII buying of around Rs 380 crore on June 25. Domestic institutional investors continued to provide strong support throughout the rally.

Advertisement

Vinit Bolinjkar, Head of Research at Ventura, said the near-term outlook for Indian markets remains cautiously positive, supported by stable global cues, softer crude oil prices and resilient domestic economic fundamentals. He expects the market to remain range-bound, with leadership likely to come from financials, information technology and select cyclical sectors, while global risk sentiment and upcoming corporate earnings will remain key factors for market direction.

On the technical front, the Nifty started the week on a positive note but witnessed profit booking in the middle of the week, slipping to an intra-week low of 23,785. The index recovered during the latter half of the week and closed 0.2 per cent higher at 24,056, maintaining its positive momentum.
 

With inputs from IANS

Advertisement