Sensex Rallies on Strong Stock Market Activity as FIIs Maintain Net Buying Trend

Sensex Rallies on Strong Stock Market Activity as FIIs Maintain Net Buying Trend​

The Indian equity markets saw cautious optimism on July 30, with the Sensex and Nifty registering modest gains amidst mixed institutional activity. The benchmark indices closed higher, reflecting a dynamic session where foreign investment trends were overshadowed by broader domestic market movements.

Key Institutional Flows Recorded​

Foreign institutional investors (FIIs) were recorded as net buyers of shares worth ₹3,624 crore on the exchange. This trend aligns with their recent performance, as FIIs have maintained a consistent pattern of net buying across the last three sessions.

On the flip side, domestic institutional investors (DIIs) registered a net selling activity amounting to ₹1,864 crore during the trading session. For the full financial year so far, however, the picture shows DIIs as significant buyers, accumulating shares worth ₹4.90 lakh crore. Conversely, FIIs have accumulated a net sale of nearly ₹3.43 lakh crore in their holdings over the same period.

Market Performance and Index Movements​

At market close, the Sensex registered a climb of 273.55 points, achieving a gain of 0.35 percent to settle at 77,928.15. The Nifty also finished strong, up 66.95 points or 0.28 percent, reaching 24,317.15.

Sectoral performance showed clear divergence. Nifty Auto emerged as the strongest sectoral index, climbing by 1.6%. In contrast, Nifty Realty was the most sluggish sector, plunging 2%. Key gainers in Nifty included M&M, Eicher Motors, Maruti Suzuki, Coal India, and Tech Mahindra. Conversely, Adani Ports, Shriram Finance, HDFC Life, UltraTech Cement, and Jio Financial were among the biggest losers.

Analyst Viewpoint: Global Headwinds Meet Domestic Resilience​

Geojit Investments Limited provided a detailed assessment of the market’s movements. Vinod Nair, Head of Research, noted that the Federal Reserve's decision to maintain the status quo on rates was largely anticipated. However, he pointed out persistent hawkishness from the Fed due to continued focus on inflation control.

The rising US bond yields signaled growing pressure for a near-future rate hike, which kept global investors in a state of caution. This external uncertainty was compounded by renewed crude oil volatility amid West Asian tensions. As a result, domestic equities experienced range-bound movement with sharp intraday swings.

Despite the headwinds, Nair added that strengthening FII inflows, coupled with a firmer rupee and encouraging Q1FY27 results, provided support to market sentiment. This positive backdrop encouraged investors to view any dips as opportune moments for selective buying.