FIIs net seller again this week as institutional flows remain sensitive to range of factors
Mumbai, July 4
Foreign institutional investors continued to remain net seller during this week, offloading Rs 4,000 crore based on provisional exchange data.
On the other hand, domestic institutional investors (DIIs) were net buyers, purchasing Rs 12,630 crore in the domestic markets.
During June, FIIs sold a cumulative Rs 49,030 crore, while DIIs bought Rs 85,800 crore, based on provisional exchange data.
During current week, except for Friday, FIIs were net seller in rest of the week, while DIIs remained net buyer for 4 out of the five sessions, except for Friday, said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.
"Benchmark Indices extended its gains for the fourth week in a row amid strong global cues and decline in crude oil prices. Brent Oil prices have fallen to levels not seen since the start of the US-Israel war on Iran," Mukherjee noted.
Looking ahead, institutional flows are likely to remain sensitive to a range of key domestic and global developments.
Investors will closely track the progress of the monsoon season, given its implications for rural demand, agricultural output, and inflation trends, said analysts.
Additionally, the upcoming Q1FY27 corporate earnings season will provide crucial insights into the health of corporate India and the sustainability of earnings growth.
Global factors such as movements in crude oil prices and developments in the ongoing US-Iran peace talks will also remain important, as they could influence inflation expectations, energy costs, and overall risk sentiment.
While risks persist amid downward revisions to earnings growth estimates, monsoon-related inflation concerns, and continued FII caution, much of the visible uncertainty appears to be priced in, leaving room for a constructive read on incremental positives, said market watchers.
Meanwhile, rupee traded stronger by around 22 paise to 95.20, supported by a weaker Dollar Index below 100.50 and easing FII selling pressure in recent sessions.
— IANS
Reader Comments
The pattern is getting predictable—FIIs run at the first sign of global trouble, and DIIs step in like our backbone. But I worry about retail investors who follow FIIs blindly. The article rightly mentions monsoon and earnings, but what about valuations? At these levels, even with DII support, the market looks stretched. Hope the Q1 results justify the optimism. 🤔
Classic emerging market story: foreign money is hot and fast. But India's domestic liquidity is a real asset—DIIs buying ₹85,800 crore in June shows institutional confidence at home. The US-Iran peace talks and crude oil drop to pre-conflict levels are bullish for India. If monsoon delivers, this FII selling could be just noise. Let the data speak in a month. 📊
Why do we celebrate FIIs as if they're the only game in town? DIIs bought ₹85,800 crore—that's our own people believing in our story. The rupee strengthening to 95.20 is a nice bonus, but the real test will be inflation from a bad monsoon. Also, ₹4,000 crore sell-off this week is peanuts compared to the ₹49,030 crore in June. Let's keep perspective, yaar.
In the US, we'd call this a 'rotation'—FIIs booking profits while domestic buyers accumulate. The decline in Brent crude below pre-conflict levels is a huge tailwind for India's import bill. But the June sell-off of ₹49,030 crore is hard to ignore; that's over $5 billion. I'd wait for the Q1 earnings season before calling this a trend.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.