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FIIs Show Early Signs of Stabilising in Indian Equities, DIIs Remain Key

Foreign Institutional Investors (FIIs) have shown early signs of stabilisation in Indian equities, turning net buyers in the final three sessions of the week. Domestic Institutional Investors (DIIs), despite outflows, continue to provide crucial structural support to the market as a stabilising force. The rupee traded stronger, supported by a softer dollar and cooling crude oil prices after Iran announced the Strait of Hormuz was open. Market sustainability hinges on geopolitical developments and crude price stability, with a positive bias expected in the news-driven week ahead.

Key Points: FIIs Stabilise in Indian Equities, DIIs Provide Support

  • FIIs turn net buyers in final sessions
  • DII outflows but role as stabilising force intact
  • Rupee strengthens on softer dollar, crude cooling
  • Geopolitics and crude stability key for sustainability
2 min read

FIIs show early signs of stabilisation in Indian equities, DIIs remain intact

FIIs turn net buyers, showing early stabilisation signs. DIIs remain a structural support. Rupee gains on softer dollar and crude price cooling.

"The positive tone is also backed by FII inflows and expectations of India-US trade discussions... - Jateen Trivedi"

New Delhi, April 18

Foreign institutional investors have begun to show early signs of stabilisation in the Indian equities following a prolonged period of outflows, according to market watchers.

Notably, FIIs turned net buyers in the final three sessions of this week, lending support to the recovery and improving overall sentiment.

However, on a cumulative basis, flows remained marginally negative for the week at around Rs 250 crore, indicating that sustained inflows will be required to confirm a more durable shift in trend, said analysts.

Meanwhile, domestic institutional investors (DIIs) outflows stood at approximately Rs 6,300 crore.

DIIs' broader role as a stabilising force remains intact, continuing to provide structural support to the market, said analysts.

Rupee traded stronger at 93.24 (+0.15 per cent) this week, supported by a softer dollar index hovering near 98, as improving sentiment around US-Iran de-escalation talks reduced safe-haven demand for the dollar.

"The positive tone is also backed by FII inflows and expectations of India-US trade discussions, which are supporting capital flows into domestic markets," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Additionally, a cooling in crude prices over the last 48 hours has eased pressure on India's import bill, providing further support to the rupee.

Global oil prices plunged sharply after Iran announced that the Strait of Hormuz was "completely open" to commercial shipping during a ceasefire period, easing fears of prolonged supply disruption in one of the world's most critical energy corridors.

Oil prices "plunged around 10 per cent" after Iran's Foreign Minister said the strait was open following a ceasefire between Israel and Lebanon.

"Overall, the rupee remains supported in the near term, but sustainability will depend on the outcome of geopolitical developments and crude price stability," said analysts.

Analysts said that markets in the coming week are likely to remain highly news-driven, though with a positive bias. Investor attention will be focused on the trajectory of US-Iran negotiations.

- IANS

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Reader Comments

S
Sarah B
As an NRI investor, this is encouraging. The cooling crude prices and rupee stability are big positives. Hope the government continues with reforms to make the market more attractive for sustained FII flows.
R
Rohit P
Good analysis. But let's not get too excited by 3 days of buying. Rs 250 crore net negative for the week tells the real story. We need consistent inflows over several weeks to call it a trend reversal. DII outflow of 6300cr is a bit concerning though.
P
Priya S
The geopolitical angle is key. If US-Iran talks go well and oil stays low, it's a double boost for India - lower CAD and better sentiment. Our markets are too dependent on global news flows, wish there was more focus on domestic earnings.
V
Vikram M
DIIs are the real heroes. When FIIs run, they provide the cushion. This shows the growing depth of our own markets. More Indians investing through SIPs and mutual funds is the backbone for the future.
M
Michael C
Interesting to see the direct link between Middle East peace talks and Indian markets. It's a reminder of how interconnected global finance is. A stable rupee will help control inflation pressures here.

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