FIIs purchase stocks worth ₹8,710cr in India this week
What's the story
Foreign Institutional Investors (FIIs) have reversed their selling trend in June by investing ₹8,710 crore in Indian equities this week. The move has triggered a market rally led by financial, energy, and IT stocks. On the other hand, Domestic Institutional Investors (DIIs) chose to book profits by offloading domestic stocks worth ₹3,049.88 crore during the same period.
Market impact
A look at the stock market
The strong buying activity on Friday saw the Indian headline indices ending their three-session losing streak. The rally was led by banks, energy, and IT stocks. The FII activity on the NSE, BSE, and MSEI in the capital market segment triggered purchases worth ₹7,940.70 crore from foreign buyers. The Nifty gained 319.15 points or 1.29% to close at 25,112.40, while Sensex finished at 82,408.17 with a rise of 1,046.30 points or 1.29%.
Market trends
Foreign investors' trend for June
Vipul Bhowar, Senior Director-Listed Investments at Waterfield Advisors, noted that the current FPI trend indicates a reversal in April and strong momentum in May. He said, "The inflows recorded in May represented the highest level observed in eight months, signifying a resurgence of interest from foreign investors in the Indian markets." However, geopolitical tensions such as the Israel-Iran conflict and global uncertainties have created a cautiously optimistic trend for June.
Investment outlook
What to expect in the coming days
Bhowar opined that with global conditions stabilizing, India could see more sustained and stable FPI inflows in the future. This would be driven by improving domestic fundamentals and a positive long-term growth outlook. There are six more sessions left in June to see if they remain net buyers for the third consecutive month.