New Delhi, August 15: Despite the ongoing rise in crude oil prices and associated market pressures, Foreign Institutional Investors (FIIs) have maintained their purchasing activity in the Indian stock market for the third consecutive week. According to provisional exchange data released on Saturday, FIIs recorded a net purchase of ₹1,228.24 crores during the week. However, the Nifty index faced pressure, dropping from 24,583 to 24,366 by the end of the week.
Domestic Institutional Investors (DIIs) also showed strength in the market, continuing their buying spree in most trading sessions. Except for the first session of the week, DIIs were net buyers, investing approximately ₹9,286 crores overall. Data indicates that DIIs had a net purchase of ₹7,768 crores during the week, with strong investment flows observed in four out of five trading sessions.
At the week’s start, FIIs bought continuously for two days but shifted to selling in the following two sessions. Nonetheless, they returned as buyers on the last trading day, suggesting that their positive outlook on India remains intact despite global uncertainties.
Analysts noted that the beginning of August was quite weak for FIIs, who sold ₹4,205 crores and ₹3,893 crores in the first two weeks of the month, respectively. During this period, the Nifty faced increased pressure, reaching a low of 23,767. However, after July 28, foreign investors changed their stance, resuming purchases that led to a recovery in the Nifty, which climbed to 24,774 by August 3.
Despite this recent buying activity, experts believe that it has not fully compensated for the earlier heavy selling. So far in August, FIIs have recorded a total investment flow of approximately ₹3,174 crores in net negative territory.
On the other hand, DIIs have provided strong support to the market throughout the month, consistently buying each week, with their total net purchases reaching ₹38,715 crores. Analysts believe that the robust participation of domestic investors has stabilized the market amid global volatility.
During the week, the performance of major indices was mixed. The Nifty closed at 24,366, down 0.8%, while the Bank Nifty saw a slight decline of 0.4% after trading within a limited range.
However, the broader market performed relatively better. The Nifty Midcap 100 Index reached a new all-time high, closing the week with a gain of 0.5%. The Nifty Smallcap 100 Index also remained near its record highs, reflecting investors’ risk appetite and ongoing interest in midcap and smallcap stocks.
Market experts believe that the direction of the Indian market in the coming days will depend on crude oil prices, global geopolitical conditions, foreign investment flows, and domestic economic indicators. Currently, the return of foreign investors and the continued buying by domestic institutional investors are seen as positive signals for the Indian equity market.
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