Foreign institutional investors (FIIs) recorded their first net equity inflow of August on Friday, buying ₹1,932.81 crore worth of Indian shares, data from the National Stock Exchange showed. This marked a reversal after five straight sessions of selling, during which FIIs pulled out over ₹16,000 crore.
Despite Friday’s inflow, FIIs remain net sellers month-to-date, offloading ₹14,018.87 crore in August so far.
Domestic institutional investors (DIIs) have provided consistent support to the Indian market, with net purchases of ₹36,795.52 crore so far this month. DIIs were net buyers in each session this week, with the highest inflow of ₹10,864.04 crore recorded on Aug 7.
“Since July, the Indian equity market has remained in a phase of consolidation, reflecting weakening investor sentiment due to trade-aligned challenges. Concerns over steep US tariff rates and underwhelming quarterly earnings have dampened market confidence. Persistent selling by FIIs, particularly in pharma stocks with significant US exposure, underscores this cautious outlook. The continued depreciation of the INR has also added to investor anxiety,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
Market update
Nifty 50 posted its sixth-consecutive weekly loss today. The last instance of the Nifty declining for six weeks was back in February and March 2020, when it corrected for seven weeks in a row.
Nifty Bank ended nearly 600 points lower and the Nifty Midcap index closed 936.1 points lower.
Bharti Airtel, HDFC Bank, Reliance, M&M, Kotak Mahindra Bank were the top contributors towards Nifty 50’s downside.
Also Read: Stock Market Highlights: Nifty posts its sixth straight weekly drop, its worst run in five years