Domestic institutional investors (DIIs) continued to bolster the domestic equity markets by making net purchases amounting to Rs 18,520 crore during the week. Conversely, foreign institutional investors (FIIs) were net sellers amidst heightened market volatility and global uncertainties. FIIs sold equities worth Rs 13,580 crore during the same period, while DIIs maintained their position as net buyers.
In May, FIIs have divested equities worth Rs 24,660 crore, contrasting with DIIs who have injected Rs 39,920 crore into the domestic markets so far. Despite FIIs being net sellers in the initial three trading sessions of the week, with cumulative outflows of nearly Rs 15,100 crore, they shifted to being net buyers in the final two sessions, with inflows of Rs 1,520 crore.
During the week, DIIs were net buyers in four out of the five trading sessions, only turning into net sellers on Friday with outflows of Rs 1,960 crore. Market analysts observed increased volatility due to rising crude oil prices, a depreciating rupee, geopolitical tensions in West Asia, and uncertainties surrounding US-China diplomatic talks in Beijing.
Experts highlighted that institutional flows are expected to be influenced by developments related to US-Iran tensions, movements in crude oil prices, and the ongoing quarterly earnings season. Additionally, Indian equity benchmarks sustained losses for another week, with Nifty 50 dropping 2.2 percent or 532 points to settle at 23,643.5, and Sensex declining 2.7 percent or over 2,000 points to close at 75,238 compared to the previous week’s close.
