Foreign institutional investors (FIIs) were net sellers this week, offloading Rs 4,000 crore, while domestic institutional investors (DIIs) were net buyers, purchasing Rs 12,630 crore. In June, FIIs sold Rs 49,030 crore, whereas DIIs bought Rs 85,800 crore based on provisional exchange data.
Throughout the current week, FIIs were net sellers except for Friday, while DIIs were net buyers for four out of five sessions, excluding Friday, as per Pabitro Mukherjee, Deputy Vice President-Research at Bajaj Broking. The benchmark indices saw gains for the fourth consecutive week due to strong global cues and a drop in crude oil prices.
Institutional flows are expected to be influenced by various domestic and global factors. Analysts highlight the importance of monitoring the monsoon season’s progress for its impact on rural demand, agricultural output, and inflation trends. The upcoming Q1FY27 corporate earnings season will offer insights into corporate India’s health and earnings growth sustainability.
Global aspects like crude oil price movements and developments in US-Iran peace talks will also be significant, affecting inflation expectations, energy costs, and overall risk sentiment. Despite risks such as earnings growth estimate revisions and monsoon-related inflation worries, market watchers suggest that much of the visible uncertainty is factored in, allowing for a positive outlook on incremental positives.
The rupee strengthened by about 22 paise to 95.20, supported by a weaker Dollar Index below 100.50 and reduced FII selling pressure in recent sessions.
