Foreign institutional investors (FIIs) reversed course this week, turning net sellers in Indian equity markets and offloading ₹2,080 crore, according to provisional exchange data. The swing comes after FIIs had been net buyers in the preceding week, highlighting the continued volatility in overseas flows.

DII Buying Provides the Cushion

Domestic institutional investors (DIIs) stepped in decisively, purchasing ₹11,100 crore across the week — more than five times the FII outflow — providing a critical buffer against a sharper market correction. DIIs remained net buyers in all four trading sessions of the truncated week.

For the month of June overall, FIIs have sold a cumulative ₹45,130 crore, while DIIs have countered with purchases worth ₹76,160 crore, underlining the growing role of domestic capital in stabilising Indian equities.

What Analysts Said

Pabitro Mukherjee, Deputy Vice President – Research at Bajaj Broking, noted that FIIs were net buyers in two of the four trading sessions this week, while DIIs supported the market across all four sessions. He added that investor sentiment improved as geopolitical tensions continued to ease and Brent crude oil prices cooled below $75 per barrel, reducing inflationary concerns and supporting risk appetite.

However, Mukherjee flagged that slow monsoon progress remained a concern for investors and capped the market's upside during the week.

Vinit Bolinjkar, Head of Research at Ventura, struck a cautiously optimistic note. 'Given steady global cues, easing crude and a resilient domestic macro backdrop, expect a cautiously positive near-term outlook — range-bound upside with sectoral leadership from financials, tech and select cyclicals — but keep an eye on global risk sentiment and earnings cues for directional conviction,' he said.

Nifty Closes Marginally Higher for Third Straight Week

The Nifty50 opened the week on a positive note but faced mid-week profit-booking pressure, touching an intra-week low of 23,785. The index recovered in the latter half to close 0.2% higher at 24,056, marking its third consecutive week of gains. Benchmark indices broadly traded in a range, reflecting a market searching for fresh directional triggers.

Notably, provisional cash-market data showed net FII inflows of approximately ₹380 crore on 25 June alone, suggesting the selling pressure was concentrated in earlier sessions of the week.

Key Factors to Watch

The monsoon's pace remains the most closely watched domestic variable, with any further delay potentially weighing on rural demand and inflation expectations. On the global front, crude price movements and upcoming earnings cues are expected to set the directional tone for Indian equities in the sessions ahead.