A strong buying activity on Friday unleashed the bulls as the Indian headline indices ended their three-session losing streak led by action in banks, energy and IT stocks. The FII activity on the NSE, BSE and MSEI in the capital market segment triggered purchases worth Rs 7,940.70 from the foreign buyers. Meanwhile, Domestic Institutional Investors (DIIs) preferred to book profits as they sold domestic stocks amounting to Rs 3,049.88 crore.
Nifty gained 319.15 points or 1.29% to close at 25,112.40, the 30-stock S&P BSE Sensex finished at 82,408.17, rising by 1,046.30 points or 1.29% riding on individual contributions from heavyweights HDFC Bank and Reliance Industries (RIL).
Commenting on the current trends, Vipul Bhowar, Senior Director-Listed Investments at Waterfield Advisors, said that the ongoing FPI pattern suggests a reversal in April, with considerable strength being demonstrated in May. “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,” he said.
However, geopolitical tensions, including the conflict between Israel and Iran, alongside global uncertainties, fostered a cautiously optimistic pattern in June, Bhowar said.
With the stabilisation in the global conditions, India may experience more sustained and stable foreign portfolio investment inflows in the future on the back of enhancing domestic fundamentals and a favourable long-term growth outlook, he opined.There are six more sessions left in June and their action would determine if they remain net buyers for the third successive month.In the fortnight ending June 15, FIIs sold local shares worth Rs 5,404 crore. The biggest takeaway was the financial services sectors where FIIs returned to buying with a purchase worth Rs 4,685 core versus a Rs 700 crore sell-off in the previous fortnight. The energy sector also saw good traction with Rs 1,199 crore worth of equity bought between June 1 and June 15 from Rs 390 crore in the previous fortnight.
Among the worst hit was telecom, where FIIs were net sellers at Rs 887 crore versus a Rs 7,052 core investment between May 16 and May 31. Auto, consumer durables and FMCG were other big laggards.
In 2025, FIIs have offloaded shares valuing Rs 96,683 crore. In the January-to-March quarter, equities worth Rs 1,16,574 were sold.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
