Domestic investors remain net buyers, FIIs turn optimistic

Domestic institutional investors remained consistent buyers, investing Rs 38,715 crore over the past month, while foreign investors resumed buying after heavy selling. However, rising crude oil prices, geopolitical uncertainty and mixed global cues pressured Indian equities, with Sensex and Nifty ending lower 

Mumbai: Domestic institutional investors (DIIs) have been net buyers in every single week in last one month, totalling Rs 38,715.18 crore. August buying (month-to-date) reads FIIs at more than 4,115.93 crore against DIIs at Rs 17,053 crore, a genuine improvement in foreign tone, according to analysts.

In last one month, FIIs sold heavily through the first two weeks — Rs 4,205.56 crore, Rs 3,892.77 crore and the index bottomed at 23,767.45 on precisely the day that pressure peaked. They then flipped to buying from July 28 onwards, and Nifty recovered to 24,774.30 by August 3.

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Even so, the cumulative figure remains negative at Rs 3,173.68 crore, meaning three weeks of buying could not undo two weeks of damage, said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.

Last week, FIIs closed as modest net buyers of Rs 1,228.24 crore, opening with two sessions of buying, reversing into two of selling, and returning as buyers on the final day. According to Ajit Mishra–SVP, Research, Religare Broking Ltd, markets ended the week lower as elevated crude oil prices, renewed geopolitical uncertainty and mixed global cues weighed on investor sentiment.

Volatility remained elevated as participants assessed the final leg of the Q1 FY27 earnings season and evaluated the potential impact of higher energy prices on inflation, the rupee and corporate margins. 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.

Rising crude oil prices and renewed geopolitical tensions remained the key headwinds for domestic equities. Brent crude stood around US$87.18 per barrel after testing the US$90 mark, raising concerns over India’s import bill, currency stability and inflationary pressures, said the analyst.

Investors continued to monitor the final leg of the Q1 FY27 earnings season, with stock-specific developments remaining an important driver of market activity, said market participants.