Foreign Institutional Investors Return as Buyers in Indian Stock Market
Foreign institutional investors invested ₹1,166 crore in Indian equities, indicating a shift in market sentiment despite recent selling trends.
New Delhi, October 17 (Daily Kiran) : Foreign institutional investors (FIIs) made a significant comeback in the Indian stock market on Friday, investing ₹1,166 crore in equities as market sentiment improved. Analysts reported this development on Saturday.
Despite this surge, FIIs remained net sellers for the week, having sold off ₹8,991 crore, a notable decrease from the previous week’s ₹30,294 crore. This shift suggests a change in foreign investors’ outlook.
Conversely, domestic institutional investors (DIIs) continued to be net buyers, investing ₹7,813 crore last week. However, they recorded a selling figure of ₹3,661 crore on Friday.
Since the start of October, up to October 16, FIIs have sold off ₹48,769 crore, while DIIs have invested ₹48,168 crore during the same period.
Analysts believe that the reduction in FII selling and the reversal of fund flows on Friday indicate stabilizing market sentiment. Nevertheless, high crude oil prices could still pose risks to recovery.
Investors are closely monitoring trends in Brent crude prices and ongoing developments between the U.S. and Iran. Domestically, attention is focused on the earnings for the second quarter of the fiscal year 2027 and the upcoming minutes from the RBI’s Monetary Policy Committee meeting.
Last week, benchmark indices witnessed a robust recovery, with the Nifty continuing its upward trend for the second consecutive week. Strength in the rupee and a softening of the U.S. 10-year Treasury yield have supported market sentiment, although Brent crude prices hovering around $105 per barrel keep inflation and external risk concerns alive.
