New Delhi, Sep 19: Foreign institutional investors (FIIs) remained cautious in the Indian stock market this week, selling equities worth around ₹7,620 crore. However, strong buying by domestic institutional investors (DIIs) helped offset part of the selling pressure.
Domestic investors, including mutual funds, insurance companies and other institutions, invested around ₹11,232 crore in Indian equities during the week.
The contrasting investment trends highlight the growing role of domestic capital in supporting the Indian equity market during periods of global uncertainty.
Foreign investors have remained cautious amid concerns over global interest rates, currency movements, crude oil prices and geopolitical developments. These factors can influence the flow of foreign money into emerging markets such as India.
At the same time, steady investments by domestic institutions are providing greater stability to the market. Regular inflows from domestic investors can help absorb some of the selling pressure created by overseas investors and reduce the impact of sudden changes in global capital flows.
The latest figures also underline the increasing importance of domestic savings and institutional investments for India’s financial markets. A stronger domestic investor base can provide markets with a more stable source of liquidity, particularly when global investors turn cautious.
Market participants will continue to watch foreign fund flows, domestic buying, global economic conditions and crude oil prices for signals on the direction of Indian equities in the coming sessions.
