Mumbai: Domestic institutional investors (DIIs) have continued to provide strong support to Indian equities, remaining net buyers in every week over the past month, while foreign institutional investors (FIIs) have shown signs of renewed buying interest.
According to market data, DIIs have made cumulative purchases of Rs 38,715.18 crore over the last one month. In August so far, FII buying stood at more than Rs 4,115.93 crore, compared with DII purchases of around Rs 17,053 crore, indicating a notable improvement in foreign investor sentiment.
FIIs had remained heavy sellers during the first two weeks of the recent period, with outflows of Rs 4,205.56 crore and Rs 3,892.77 crore. The selling pressure coincided with the Nifty touching a low of 23,767.45. However, foreign investors subsequently turned buyers from July 28, helping the Nifty recover to 24,774.30 by August 3.
Despite the recent improvement, FIIs remain net sellers on a cumulative basis, with net outflows of Rs 3,173.68 crore, according to Bajaj Broking Deputy Vice President-Research Pabitro Mukherjee. Last week, FIIs were modest net buyers of Rs 1,228.24 crore, despite alternating sessions of buying and selling.
Market sentiment, however, remains sensitive to global developments. Rising crude oil prices, geopolitical uncertainty and mixed international cues weighed on Indian equities during the week. Investors are also assessing the final phase of the Q1 FY27 earnings season and its implications for corporate profitability.
For the week, the Sensex declined 0.62 per cent to close at 78,009.25, while the Nifty fell 0.83 per cent to settle at 24,366.
Analysts have highlighted elevated crude prices as a key risk for the Indian market. Brent crude was trading around $87.18 a barrel after briefly testing the $90 level, raising concerns over India’s import bill, the rupee and inflationary pressures.
With domestic institutions continuing to provide a strong liquidity cushion and foreign investors showing early signs of returning to the buying side, market participants are likely to closely track FII-DII flows, crude prices, geopolitical developments and corporate earnings in the coming sessions.
