FIIs flipped to net buyers of Indian equities for the first time since February 25, signaling a potential shift in foreign investor sentiment. They purchased shares worth ₹672.09 crore on April 10. Simultaneously, domestic institutional investors (DIIs) added another ₹410.05 crore to their positions, according to provisional exchange data.
The market saw significant institutional support during Friday's trading session. DIIs were active, picking up shares worth ₹15,982 crore against sales of ₹15,572 crore. FII buying interest was notable, with firms purchasing ₹18,304 crore while offloading shares valued at ₹17,632 crore.
Key Market Indexes Rally on Global Optimism
Benchmark indices mirrored the strong buying sentiment. The Sensex surged 919 points, marking a 1.2 percent gain to close at 77,550. Meanwhile, the Nifty soared 276 points, rising 1.16 percent to reach 24,051.The rally was not confined to large-cap stocks. The Nifty Midcap and Smallcap indices also showed robust participation, rising by 1.52 percent and 1.65 percent, respectively. This breadth of participation underscored broad-based buying interest across the market spectrum.
Sectoral Outperformance and Investor Drivers
Sectors like auto, banking & financials, and realty led the market charge, seeing rallies of 2-3 percent. Experts attribute this strength to investor comfort levels regarding current valuations across these vital segments.Geojit Investments noted that the uplift in Indian equities was supported by positive global cues and optimism surrounding geopolitical de-escalation in West Asia. Vinod Nair, Head of Research at Geojit Investments, highlighted that mid cap and small cap stocks outperformed large caps during the session.
Conversely, the IT sector underperformed its peers. This weakness followed TCS's quarterly numbers, alongside profit booking concerns triggered by recent sector rallies amid AI-related disruptions.
Domestic and Foreign Flow Dynamics
Despite FIIs turning net buyers, which marks a notable turnaround, the yearly picture shows mixed trends. For the year so far, FIIs have remained net sellers, selling shares valued at ₹2.12 lakh crore. In contrast, DIIs have demonstrated consistent accumulation, net buying shares worth ₹2.77 lakh crore.FII selling intensity moderated from Wednesday onward, with the Nifty 50 recording a 5.89 percent gain this week. This moderation in outflows suggests a potential easing in foreign investment pressure.
Expert Outlook: Range-Bound Ahead of Global Triggers
While the positive momentum is clear, analysts urge caution regarding immediate upside. Vikram Kasat, Head Advisory at PL Capital, suggested that while the bounce is positive, the market is likely to remain range-bound in the near term.Sustained upward movement, according to Kasat, will hinge critically on global stability, the trajectory of FII flows, and the release of upcoming corporate earnings data. Investors are expected to maintain a selective approach, favouring high-quality stocks.
Looking forward, market direction will remain closely tied to the outcome of US-Iran peace talks this weekend, with medium term earnings stability and current valuations guiding investor sentiment.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.