New Delhi: Amid continued foreign institutional investor (FII) outflows, domestic institutional investors (DIIs) emerged as strong market supporters, investing Rs 26,897 crore last week and effectively offsetting heavy selling by FIIs.
This continued domestic participation helped cushion the downside and provided stability near key support zones, said analysts.
“Foreign institutional investors remained consistent net sellers throughout the week, with cumulative outflows of approximately Rs 24,596 crore, driven by global uncertainty, rising bond yields, and a stronger US dollar,” said Ponmudi R, CEO, Enrich Money, a SEBI-registered online trading and wealthtech firm.
Despite DII dominance over FII outflows, overall market sentiment remains weak, clearly reflecting the impact of broader global and macroeconomic headwinds, he mentioned.
As of March 27, FIIs extended their aggressive selling in Indian equities. This pushed March MTD (month-to-date) outflows past Rs 1.13 lakh crore — the sharpest single-month sell-off in FY26 — driven by West Asia tensions and elevated oil prices.
“DIIs countered strongly with Rs 25,000+ crore of net buying weekly, cushioning the fall,” said Vinit Bolinjkar, Head of Research-Ventura
Near-term outlook stays cautious and “we expect range-bound action and elevated VIX until global risk sentiment eases”, he mentioned.
“Yet robust domestic flows and any de-escalation in geopolitics should limit downside, favouring quality large-caps and domestic themes over high-beta plays,” said Bolinjkar.
Meanwhile, the Indian equity benchmarks closed lower for the fifth consecutive week, amid persistent geopolitical tensions, elevated crude oil prices and sustained foreign outflows.
Nifty dipped 1.28 per cent during the week and declined 2.09 per cent on the last trading day to settle at 22,819. At close, Sensex was down 1,690 points or 2.25 per cent, at 73,583. It declined 1.27 per cent during the week.
Both indices remained volatile and under pressure throughout the week, although they attempted intermittent recoveries during the week.
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AI image/IANS
–IANS
