FIIs Offload ₹943 Crore as Domestic Institutions Inject Massive Support in Equity Markets
Foreign Outflows vs Domestic Shield as Institutional Investors Trade
Foreign institutional investors (FIIs) registered a net outflow of ₹943.42 crore in Indian equities on August 5, marking the end of their previous two-session buying streak. FIIs purchased shares totaling ₹15,940.50 crore but sold stakes valued at ₹16,883.92 crore during the session.Meanwhile, domestic institutional investors (DIIs) provided a strong counterpoint, registering a net inflow of ₹2,883.17 crore. DIIs acquired shares worth ₹19,353.43 crore and disposed of holdings amounting to ₹16,470.26 crore.
Looking at the year-to-date trend, foreign investors have withdrawn approximately ₹3.40 lakh crore from Indian equities. In sharp contrast, DIIs continue their sustained buying spree, having invested nearly ₹4.94 lakh crore into domestic markets.
Indices Climb Marginally Amid Sectoral Strength
Indian benchmark indices closed marginally higher on August 5, buoyed by strong performance in specific sectors. The Nifty 50 concluded the day largely flat at 24,624.The broader market showed notable strength, with the Nifty Midcap 100 and Nifty Smallcap 100 advancing 0.2% and 0.7%, respectively. Gains were evident across metal, automobile, and realty stocks, effectively offsetting profit booking that occurred in select index heavyweights.
RBI Maintains Stance While Geopolitical Risks Warrant Caution
The Reserve Bank of India (RBI) maintained its monetary policy stance by keeping the repo rate unchanged at 5.5%. The central bank also increased its FY27 GDP growth forecast to 6.7% from 6.6%, while raising the inflation forecast to 5.1% from 5%.According to Siddhartha Khemka of Motilal Oswal Financial Services, a positive bias is expected in Indian equities. This outlook is supported by lower Brent crude prices, which stood around $80.5 per barrel, promising improved conditions for corporate margins and inflation management.
The RBI cautioned market participants that close monitoring is warranted given geopolitical tensions in West Asia and ongoing global trade uncertainties. Khemka added that easing oil prices and resilient domestic fundamentals are set to support equities, emphasizing that stock-specific developments will likely dominate the market theme.
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