Domestic Investors Provide Support Amid Ongoing Foreign Outflows
Synopsis
In a challenging market environment characterized by persistent foreign outflows, domestic institutional investors are stepping up as net buyers, significantly supporting the market. This trend is crucial for maintaining stability amidst global uncertainties.
Key Takeaways
DIIs have invested Rs 26,897 crore last week.
FIIs sold off Rs 24,596 crore amidst global uncertainties.
Market sentiment remains weak due to macroeconomic challenges.
Nifty and Sensex have seen significant declines in recent weeks.
Expectations of cautious market movements in the near term.
New Delhi, March 29 (NationPress) In light of ongoing foreign outflows, domestic institutional investors (DIIs) have stepped up significantly, acting as net purchasers with a remarkable total of Rs 26,897 crore in the past week, effectively mitigating the selling pressure created by foreign institutional investors (FIIs).
This sustained domestic involvement has played a crucial role in stabilizing the market, particularly around key support levels, as noted by market analysts.
“Throughout the week, FIIs have consistently been net sellers, accumulating a total outflow of about Rs 24,596 crore. This trend has been influenced by global uncertainties, rising bond yields, and a strong US dollar,” stated Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealthtech company.
Despite the dominance of DIIs countering FII outflows, the overall sentiment in the market remains subdued, reflecting the challenges posed by global and macroeconomic pressures, he added.
As of March 27, FIIs have intensified their selling of Indian equities, resulting in March's month-to-date outflows surpassing Rs 1.13 lakh crore, marking the steepest single-month sell-off in FY26, exacerbated by tensions in West Asia and soaring oil prices.
“DIIs have strongly countered this trend with over Rs 25,000 crore in net purchases on a weekly basis, helping to cushion the market's decline,” remarked Vinit Bolinjkar, Head of Research at Ventura.
The near-term outlook remains cautious, with expectations of range-bound movements and a high VIX until global risk sentiments stabilize, he mentioned.
“Nevertheless, strong domestic inflows and any de-escalation in geopolitical tensions should help limit further declines, favoring quality large-cap stocks and domestic themes over riskier high-beta plays,” Bolinjkar added.
In the meantime, Indian equity benchmarks have closed lower for the fifth consecutive week, amid ongoing geopolitical uncertainties, high crude oil prices, and persistent foreign outflows.
The Nifty index fell by 1.28% during the week and decreased by 2.09% on the final trading day, settling at 22,819. The Sensex also dropped by 1,690 points, or 2.25%, closing at 73,583, showing a 1.27% decline for the week.
Both indices experienced volatility and pressure throughout the week, although they made intermittent attempts to recover.
Point of View
The resilience displayed by domestic institutional investors amidst foreign outflows is commendable. While the market sentiment remains subdued due to global challenges, the strong domestic support could pave the way for recovery in the future.
NationPress
29 Jun 2026
Frequently Asked Questions
What are the recent trends in the Indian stock market?
The Indian stock market has seen persistent foreign outflows, with FIIs selling off approximately Rs 24,596 crore last week. However, domestic institutional investors have countered this trend, emerging as net buyers.
How much have domestic institutional investors invested recently?
Domestic institutional investors have emerged as net buyers with a total investment of Rs 26,897 crore last week.
What factors are influencing foreign outflows in India?
Foreign outflows are primarily driven by global uncertainties, increasing bond yields, and a strengthening US dollar.
What is the current outlook for the Indian equity market?
The near-term outlook remains cautious, with expectations of range-bound action and elevated volatility until global risk sentiments improve.
How did the Nifty and Sensex perform recently?
The Nifty index fell by 1.28% during the week, while the Sensex declined by 2.25%, closing lower for the fifth consecutive week.
