Foreign Investors Continue Strong Buying, Nifty Gains 0.6% for Third Consecutive Week

New Delhi, November 14 (Daily Kiran) : Indian stock markets witnessed robust buying from foreign institutional investors (FIIs) for the third consecutive week. During this period, FIIs injected a net ₹33,340 crore into the Indian equity market, providing significant support to key indices and closing the market on a positive note.

Market analysts view this sustained buying as a positive signal for Indian markets, especially following ten weeks of continuous selling. However, they caution that the market’s trajectory in the coming weeks will largely depend on how long this foreign investment flow continues.

In contrast, domestic institutional investors (DIIs) remained net sellers for the second week in a row. They sold shares worth ₹24,190 crore throughout the week, maintaining a selling trend across all four trading sessions.

Experts suggest that investors are closely monitoring geopolitical developments related to the U.S.-Iran situation and their potential impact on crude oil prices. Additionally, the minutes from the upcoming Federal Open Market Committee (FOMC) meeting and India’s wholesale price index (WPI)-based inflation figures will be crucial indicators for investors.

The decline in Brent crude oil prices during the week also provided some support to the Indian market. However, higher-than-expected inflation data from both India and the U.S. somewhat tempered market optimism. There is a growing belief among investors that the central bank may adopt a stricter stance on interest rates in December.

On a weekly basis, the Nifty index rose by 0.6%, closing at 25,144.3. During the week, the index peaked at 25,424 on Wednesday but faced profit booking at these elevated levels.

Banking stocks performed particularly well, with the Bank Nifty recording a 3.7% increase. Broader market strength was also evident, as the Nifty Midcap 100 and Nifty Smallcap 100 indices rose by 2% and 2.6%, respectively.

However, by the end of trading on Friday, the 30-share BSE Sensex fell by 318.56 points, or 0.39%, closing at 81,592.45. The NSE Nifty 50 also slipped by 155.05 points, or 0.61%, settling at 25,144.30.

Notably, in the previous week, foreign investors had made substantial purchases amounting to ₹45,960 crore, which had bolstered market sentiment. In contrast, FIIs were net sellers of ₹24,475 crore in October, with the previous month seeing a net selling of ₹58,443 crore. During the same period, DIIs recorded a net selling of ₹28,943 crore.

Meanwhile, a report from brokerage firm Citi Research predicts that strong corporate earnings, soft crude oil prices, and a potential slowdown in capital expenditure related to artificial intelligence (AI) could drive the Nifty 50 to 28,000 points by the end of 2027.

Experts believe that foreign investment, trends in crude oil prices, inflation data, and global central bank policies will be key factors influencing the direction of the Indian stock market in the months ahead.