Foreign institutional investors (FIIs) continued their trend of selling Indian equities for the 10th straight month in April, with sales amounting to Rs 70,100 crore as per exchange data. Conversely, domestic institutional investors (DIIs) emerged as net buyers, investing Rs 51,000 crore during the same period.
Last week, FIIs sold around Rs 13,000 crore while DIIs infused about Rs 11,500 crore into the market. Pabitro Mukherjee, Associate Vice President–Research at Bajaj Broking, attributed FII selling to a weaker rupee and high oil prices, resulting in offloading Rs 2,40,750 crore in the current year.
DIIs have been absorbing a significant portion of the selling pressure, preventing deeper market declines. The surge in crude oil prices last week, driven by concerns of a prolonged blockade of Iranian ports, has reignited inflation worries, prompting FIIs to sell in all four trading sessions.
Market sentiment was weighed down by persistent FII selling and elevated crude prices, causing Indian equity benchmarks to close in the red this week. Nifty lost 0.73% during the week, reaching 23,997, while the Sensex dropped 582 points to 76,913, down by 0.75%. Looking ahead, institutional activity is expected to be influenced by global news developments, particularly US–Iran negotiations and the outcome of state assembly elections.
