Foreign institutional investors continue to net sell Indian equities for the sixth consecutive week, reflecting ongoing global uncertainties, while domestic buyers help cushion market declines amid geopolitical tensions and high crude prices.
Foreign investors remained net sellers of Indian equities for a sixth straight week, deepening a run of outflows that has kept markets under pressure even as domestic institutions stepped in to buy. Exchange data showed foreign institutional investors sold shares worth Rs 11,490 crore during the week, while domestic institutional investors bought Rs 16,398 crore, cushioning the broader decline.
The pattern has been consistent throughout the month. According to exchange data cited by market participants, foreign investors have sold a net Rs 18,531 crore month to date, while domestic funds have bought Rs 52,617 crore. That split has helped contain losses in the Nifty, which has fallen 3.90 per cent from its August-end close of 24,080.40.
Friday brought a modest recovery after the previous session’s sharper sell-off. The Nifty ended at 23,140.50 and the Sensex closed at 73,895.74, up 0.43 per cent, after trading in a narrow range for much of the day. Analysts said oversold positions in large stocks offered some support, but the mood remained cautious amid high global bond yields, firm crude prices and continued foreign selling.
Pabitro Mukherjee, deputy vice-president for research at Bajaj Broking, said foreign investors had been net sellers in every week of the past month, while domestic institutions had stayed buyers and helped limit the damage. Market participants are now watching Brent crude, US-Iran tensions and US second-quarter GDP data for clues on the next move. Brent has been hovering around $105 to $106 a barrel, a level that analysts say leaves little room for relief on inflation or the wider macro outlook, especially if geopolitical risks in the Middle East worsen.
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