Domestic Resilience Counters Global Weakness as DII Buying Continues to Support Markets
Indian markets are expected to open on a cautious note after a sharp sell-off in global equities. The US markets witnessed significant weakness, with the Nasdaq declining 4.77%, the S&P 500 falling 2.64%, and the Dow Jones losing 1.35%, reflecting heightened risk aversion among investors. Gift Nifty is indicating a marginally negative opening for domestic markets. However, market breadth remained balanced during the previous session, with advance-decline ratios on both NSE and BSE suggesting resilience despite weak global cues. Investors are likely to remain focused on global developments, institutional flows, and sector-specific opportunities.
FII and DII Activity:
Institutional activity remained sharply divergent. Foreign Institutional Investors (FIIs) continued their selling streak with net outflows of approximately Rs8,776 crore, reflecting a cautious stance amid global market uncertainty. In contrast, Domestic Institutional Investors (DIIs) remained strong buyers, infusing nearly Rs9,134 crore into equities and effectively offsetting foreign selling pressure. The sustained support from domestic institutions continues to act as a key stabilizing factor for Indian markets despite persistent FII outflows.
Sector Activity:
Sectoral performance remained mixed with selective pockets of strength. Realty, PSU Banks, Chemicals, FMCG, and Auto sectors outperformed, led by stocks such as Prestige Estates, Canara Bank, Himadri Speciality Chemicals, Hindustan Unilever, and Mahindra & Mahindra. On the other hand, Oil & Gas and Metal stocks witnessed profit booking, while IT remained under pressure following weakness in global technology markets. The broader market continues to favor domestic consumption, financials, and infrastructure-linked themes over export-oriented sectors.
Long, Short, Long Unwinding & Short Covering:
Derivative data reflects selective bullish positioning despite broader market caution. Fresh long build-up was observed in Solar Industries, JSW Energy, Adani Ports, Tata Consumer, and Amber Enterprises, indicating confidence in power, infrastructure, and consumption-related themes. Fresh short positions were created in Vedanta, Muthoot Finance, IRFC, Premier Energies, and Nuvama Wealth, highlighting weakness in select financial and metal counters. Long unwinding was visible in LIC Housing Finance, Kaynes Technology, Nestlé India, Polycab, and GMR Airports, suggesting profit booking. Meanwhile, short covering emerged in Tata Motors Passenger Vehicles, Bharti Airtel, MCX, and Power India, indicating renewed buying interest at lower levels.
Top 5 News Highlights:
Wipro declined sharply following the record date for its Rs15,000 crore share buyback program, triggering post-buyback profit booking.
NHPC came under pressure after the Government of India launched an Offer for Sale (OFS) of up to 6% stake, although institutional demand remained robust.
ACME Solar Holdings surged over 11% after successfully completing a Rs2,800 crore Qualified Institutional Placement (QIP), strengthening its balance sheet.
Bharat Heavy Electricals (BHEL) witnessed significant profit booking following a rating downgrade by UBS despite maintaining a strong long-term order pipeline.
Adani Ports continued its strong momentum, supported by robust operational performance, positive brokerage commentary, and fresh long build-up in derivatives.
Overall, while global markets remain under pressure, strong domestic institutional participation, healthy market breadth, and selective sectoral strength continue to provide support to Indian equities. Investors should remain selective and focus on fundamentally strong businesses amid ongoing market volatility.
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