FIIs Surge Into Market, Buying Shares Worth ₹1,962 Crore Despite Index Selloff Amid Geopolitical Tensions

FIIs Surge Into Market, Buying Shares Worth ₹1,962 Crore Despite Index Selloff Amid Geopolitical Tensions​

Foreign Institutional Investors (FIIs) maintained a strong bullish stance on Indian equities on July 8, registering a net inflow of ₹1,962.80 crore despite the broader market witnessing a sharp decline. Meanwhile, Domestic Institutional Investors (DIIs) also remained supportive, adding another ₹790.16 crore to their holdings.

This resilience in institutional buying contrasts with significant selling pressure observed throughout the session, primarily triggered by geopolitical tensions and a steep rise in crude oil prices. FIIs bought shares valued at ₹17,463.95 crore, successfully absorbing sales of equities amounting to ₹15,501.15 crore, resulting in their net gain.

Institutional Flows Reflect Resilience Despite Market Decline​

Provisional exchange data for July 8 suggests a continued commitment from institutional investors despite the volatility. FIIs extended their streak of buying for a third consecutive session, demonstrating conviction amidst adverse market conditions.

DIIs played an equally stabilizing role on the domestic front. They purchased shares valued at ₹19,165.13 crore and sold equities totaling ₹18,374.97 crore, resulting in a net inflow of ₹790.16 crore.

Year-to-date (YTD) flows show that FPI/FIIs have registered a net sale of ₹3.45 lakh crore for the year so far. Conversely, DIIs have consistently added exposure, reporting a net purchase of ₹4.67 lakh crore till date.

Broader Market Plummets Amid Oil Price Surge​

The market experienced heavy selling pressure throughout the session. The benchmark Nifty 50 declined sharply by 2.12%, closing at 23,882. The Sensex also saw a decline of 2.15%, settling at 76,503.60.

Sharp weakness was evident in the broader market indices. The Nifty Midcap 100 index fell by 1.55%, while the Nifty Small cap 100 experienced a steeper drop of 2.24%. This indicates heightened risk-off sentiment among investors across various market segments.

Geopolitical Tensions and Crude Oil Bear Down Market​

The selling pressure intensified dramatically around 2:00 pm. Key factors cited for this decline included comments made by US President Donald Trump regarding the ceasefire with Iran, coupled with a significant surge in crude oil prices.

Brent crude oil surged by 6%, reaching USD 78 per barrel. Elevated crude costs disproportionately impact India, as the nation is the world's third-largest importer and consumer of oil. This inflationary pressure directly weighs on economic growth trajectories for India.

The rise in energy costs dragged Nifty 50 from its high of 24,300 down to an intraday low near 23,805, marking a fall of 500 points in that single session. Sectoral performance also reflected this trend, with all major sectoral indices ending in negative territory.

Key Sectors Under Pressure​

While Nifty Metal managed to outperform relative to other sectors, it still closed the session in the red zone amidst widespread selling across the market. Specific cautionary signs were noted among key defensive and domestic consumption segments.

Nifty FMCG and Private Banks emerged as two of the most significant laggards, both witnessing considerable selling pressure during the volatile trading day.