New Delhi, July 19: Last week, strong buying by domestic institutional investors (DIIs) offset heavy selling by foreign institutional investors (FIIs). This trend indicates that despite global uncertainties, domestic liquidity is bolstering the Indian stock market, analysts reported on Sunday.
During the past week, FIIs recorded a net outflow of ₹8,743.35 crore in the Indian stock market. In contrast, DIIs made a net investment of ₹8,790.75 crore, completely compensating for the FIIs’ withdrawals, leading to the Nifty closing at 24,334.30.
Market analysts suggest that the divergence in investment trends between foreign and domestic institutional investors highlights the growing role of domestic investors in supporting the Indian stock market.
Analysts further noted that strong domestic liquidity, stable macroeconomic fundamentals, and improving corporate earnings expectations are providing structural strength to the market despite global challenges.
One analyst stated, “Geopolitical uncertainties, fluctuations in crude oil prices, and changing expectations regarding global monetary policy may lead to market volatility in the near term.”
Throughout the week, global indicators were mixed. Due to ongoing geopolitical tensions in West Asia, Brent crude prices remained elevated, trading around $88 per barrel.
Additionally, fluctuations in the currency market and shifting expectations regarding global interest rates also impacted investor sentiment.
Analysts believe that geopolitical risks, crude oil price volatility, and uncertainty regarding the direction of global interest rates could keep market instability high in the near future.
Looking ahead, the earnings season for the first quarter of the fiscal year 2026-27 will be a crucial factor in determining market direction. This will influence investment trends across various sectors and create opportunities in select stocks.
Market experts advise investors to focus on companies with strong fundamentals, better earnings potential, and consistent performance rather than chasing momentum during bullish phases.
They emphasized that in the coming weeks, investors should concentrate more on quarterly results and earnings performance of companies rather than the overall market trend. Therefore, adopting a selective strategy and investing in companies with strong fundamentals and better earnings visibility is recommended.
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