FIIs Turn Net Buyers, DIIs Lead Massive Inflow as Indian Equities Rally Higher

FIIs Turn Net Buyers, DIIs Lead Massive Inflow as Indian Equities Rally Higher​

Domestic and Foreign Investment Flows Surge on July 6​

Domestic institutional investors (DIIs) continued their strong buying trend in the equity market on July 6. DIIs purchased shares worth ₹19,727.56 crore, resulting in a net inflow of ₹3,791.42 crore for the day.

Foreign institutional investors (FIIs), meanwhile, also turned buyers. FIIs purchased shares amounting to ₹11,686.10 crore against sales of ₹11,443.07 crore, generating a net inflow of ₹243.03 crore according to provisional exchange data.

Market Performance and Index Gains​

Indian benchmark indices concluded the session higher, supported by positive movements across financials, IT, and auto sectors as investors anticipate the start of the June-quarter earnings season.

The BSE Sensex gained 303.03 points, closing at 77,462.94, marking a rise of 0.39%. The NSE Nifty 50 also extended its upward trajectory, gaining 88.80 points and settling at 24,132.10, showing a gain of 0.37%.

Sectoral Insights into FII Holdings​

FII equity assets under custody (AUC) saw a marginal rise in June, increasing by 1.4% to ₹68.6 trillion. However, overall FII ownership in Indian equities slightly decreased to 14.2%, down from 14.4% recorded in May.

BFSI remained the dominant sector within FII portfolios, accounting for 30.8% of total AUC. Capital Goods held 7.5%, Pharma represented 7.4%, Auto stood at 7.3%, and Oil &Gas accounted for 6.8%. These five sectors collectively made up nearly 60% of FII holdings in India.

Long-Term Market Trends and Global Indexing​

Over the last twelve months, primary markets saw FII inflows totaling ₹728 billion. This contrasts with secondary markets, which experienced significant outflows amounting to ₹4,528 billion over the same period.

India's weight in the MSCI Emerging Markets Index climbed to 11.1% in June, up from 10.9% in May.

Expert Viewpoints on Future Catalysts​

Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, provided a bullish outlook on Indian equities. He suggested that sustained growth is likely, buoyed by stable crude oil prices and a steady rupee.

Khemka added that the pre-quarterly business updates, particularly from the banking sector and financials, offer strong support. He expects the Q1FY27 earnings season to be the critical near-term catalyst, projecting Nifty earnings growth around 10% year-on-year—the strongest quarterly growth in the last four quarters.