New Delhi, August 22: The Indian stock market faced pressure for the second consecutive week, influenced by rising crude oil prices and tensions between the U.S. and Iran. During this period, foreign institutional investors (FIIs) pulled out a net ₹1,602 crore from the Indian market, while domestic institutional investors (DIIs) continued to support the market through sustained buying.
Market experts noted that FIIs returned to a selling stance after three weeks of consistent buying. Their investment behavior was mixed throughout the week. In the first trading session, they sold off, followed by two sessions of buying, before resuming selling in the final two trading days.
From July 20 to August 21, FIIs were sellers in the first week, turned buyers for three consecutive weeks, and then sold off again this week. Despite this, their overall activity over the past month resulted in a net purchase of ₹1,282 crore.
Conversely, domestic institutional investors maintained strong buying momentum. Over the past month, they have consistently invested, totaling ₹48,390 crore. This week alone, DIIs recorded a net purchase of ₹17,320 crore.
Looking at the figures for August so far, both categories of investors have remained net buyers. During this period, FIIs invested ₹2,510 crore, while DIIs contributed ₹34,370 crore.
Throughout the week, major indices experienced limited fluctuations. Crude oil prices remained above $92 per barrel in international markets, and ongoing tensions between the U.S. and Iran affected investor sentiment.
Nifty began the week on a weak note, hitting a low of 24,026 midweek. However, a recovery was observed in the last two trading sessions, allowing the index to rebound from its lows. By the end of the week, Nifty closed at 24,252, reflecting a decline of approximately 0.5% compared to the previous week.
The broader market performed relatively better. The Nifty Midcap 100 Index closed nearly flat, while the Nifty Smallcap 100 Index reached a new all-time high, recording an increase of over 1% for the week. This indicates that investor interest remains strong in mid and small-cap stocks.
Analysts believe that in the coming days, investors will closely monitor crude oil prices, geopolitical developments between the U.S. and Iran, and the activities of foreign investors. If oil prices rise further, it could increase pressure on the Indian market. Meanwhile, the robust buying by domestic institutional investors may continue to provide support.
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