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Below the Quote on FII-DII Flows and Market Outlook by Vinit Bolinjkar, Head of Research, Ventura

“The continuation of FII selling for the 13th consecutive session reflects persistent caution among foreign investors, although the moderation in outflows suggests that selling pressure has eased somewhat. Importantly, strong DII inflows continue to provide a counterbalance, absorbing a significant portion of foreign selling and helping cushion the impact on domestic equities. However, while domestic institutional participation remains a key source of market resilience, it may not be sufficient to sustain a broad-based rally if foreign outflows persist. Going forward, the direction of markets will depend on a combination of global risk appetite, currency movements, crude oil prices and corporate earnings momentum. In the near term, markets may remain volatile and selective, with investors likely to favour companies demonstrating consistent earnings growth, strong balance sheets and reasonable valuations. A sustained recovery in FII flows, alongside continued domestic buying, would provide a stronger signal of improving market sentiment.”

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