FIIs Turn Buyers as DII Strength Lifts Market Amid Global Cautiousness

FIIs Turn Buyers as DII Strength Lifts Market Amid Global Cautiousness​

Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) showed divergent trends on July 28. While FIIs made a successful turnaround, shifting from previous net selling positions, DIIs continued their streak of net buying, signaling underlying support in the domestic stock market. The broad indices closed with marginal declines as investors awaited cues ahead of key global economic events.

Institutional Flow and Stock Market Performance​

Provisional data released by the exchange indicates that FIIs were net buyers of shares worth Rs 755 crore on this day. This marks a significant reversal, following several consecutive trading sessions where they had been net sellers. Meanwhile, DIIs stood out as strong supporters, resulting in a net purchase of shares amounting to Rs 1,664 crore.

During the session, the institutional movements were notable. DIIs purchased shares worth Rs 16,593 crore but also sold shares totaling Rs 18,257 crore. Correspondingly, FIIs bought shares worth Rs 17,531 crore and sold shares amounting to Rs 16,776 crore.

Year-to-Date Institutional Trends​

Looking at the year so far, institutional sentiment remains mixed yet characterized by strong domestic buying. As of today, FIIs have registered a net selling position totaling nearly Rs 3.50 lakh crore in shares. In contrast, DIIs have shown consistent support, accumulating net purchases amounting to Rs 4.91 lakh crore.

Broader Market and Index Action​

The major indices ended the session on a subdued note. The Sensex finished down 69.86 points or 0.09 percent, settling at 76,765.92. Similarly, the Nifty was marginally weaker, closing down 10.60 points or 0.04 percent at 23,985.35.

The broader market reflected this mixed mood. The Nifty Midcap 100 index registered a slight uptick of 0.1%, while the Nifty Smallcap 100 index managed to slip by 0.2%.

Market Outlook and Expert Commentary​

Ajit Mishra, SVP at Religare Broking, noted that sectoral performance was varied throughout the day. The Information Technology (IT) sector emerged as a notable outperformer, driven by renewed buying interest from investors.

Mishra added that overall investor sentiment remains guarded ahead of the upcoming policy meeting by the US Federal Reserve. This caution prompted participants to refrain from making aggressive positions in their portfolios. A silver lining was noted with the decline in Brent crude prices towards the $84 per barrel mark, which offered some relief given easing geopolitical concerns.

Given the complex global backdrop and the ongoing earnings season that continues to drive stock-specific action across sectors, Religare Broking advises a selective, stock-specific approach. The firm prefers investing in auto and pharma stocks while maintaining disciplined risk management until greater market clarity emerges regarding its next directional move.