Strong FII buying extends for third week as Nifty gains 0.6 pc
Sustained foreign institutional investor (FII) inflows that amounted to Rs 33,340 crore during the week helped Indian equity benchmarks end the week higher. FIIs extended their buying streak to three consecutive weeks following a 10-week selling phase.
Domestic institutional investors (DIIs), however, were net sellers for a second straight week, offloading equities worth Rs 24,190 crore and remaining sellers in all four trading sessions.
The sustainability of these foreign inflows will be the key variable in the coming weeks, with market participants closely tracking US-Iran geopolitical developments and their impact on crude oil prices, analysts said. Market participants are also keen on US Federal Open Market Committee (FOMC) minutes and India’s WPI inflation data for cues on the coming monetary policy outlook.
Easing Brent crude oil prices also supported the market, even as higher-than-expected inflation readings in both India and the US capped upside, as expectations of a rate hike at the upcoming December policy meeting gained traction.
The Nifty rose 0.6 per cent for the week to close at 25,144.3 after touching an intra-week high of 25,424 on Wednesday before witnessing profit booking at higher levels.
The Bank Nifty outperformed, advancing 3.7 per cent, while broader markets remained strong, with the Nifty Midcap 100 and Nifty Smallcap 100 gaining 2 per cent and 2.6 per cent, respectively.
Foreign institutional investors made substantial net inflows of approximately Rs 45,960 crore in the previous week, marking a significant turnaround from the persistent selling trend.
In October, FII remained net sellers in India with outflows of Rs 24,475 crore, against outflows of Rs 58,443 crore month ago, while DIIs recorded net outflows of Rs 28,943 crore.
A report from brokerage firm Citi Research said Nifty 50 is likely to reach 28,000 points by the end of 2027, supported by a strong earnings outlook, lower oil prices and the prospect of slower global artificial intelligence-related capital expenditure.
