Foreign Institutional Investors Post Net Purchase of Rs 2,836 Crore in Stocks on May 4; Domestic Institutional Investors Record Net Purchase of Rs 4,764.
Market Recap: Indian Indices See Gains Amid Global Sentiment Boost
The Indian stock market witnessed a positive trading session on May 4, with both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) emerging as net buyers. According to provisional exchange data, FIIs net bought shares worth Rs 2,836 crore, while DIIs net bought shares worth Rs 4,764 crore.
In terms of buying and selling activity, DIIs purchased shares worth Rs 19,516 crore and sold shares worth Rs 14,752 crore. On the other hand, FIIs bought shares worth Rs 19,660 crore but sold shares totalling Rs 16,825 crore.
| Market Segment | Buying Value (Rs crore) | Selling Value (Rs crore) | Net Value (Rs crore) |
|---|---|---|---|
| DIIs | 19,516 | 14,752 | 4,764 |
| FIIs | 19,660 | 16,825 | 2,836 |
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
For the year so far, FIIs have been net sellers of shares worth Rs 2.36 lakh crore, while DIIs have been net buyers of shares worth Rs 2.95 lakh crore.
At close, the Sensex was up 355.90 points or 0.46 percent at 77,269.40, and the Nifty was up 121.75 points or 0.51 percent at 24,119.30. Market analysts attribute the gains to cooling crude oil prices following signs of geopolitical relief in the Middle East, which supported global sentiment.
According to Ajit Mishra, Senior Vice President of Research at Religare Broking, the initial upmove was primarily driven by strong monthly auto sales data and buying in select heavyweights. However, intermittent volatility persisted due to ongoing uncertainty around US-Iran negotiations, a weak rupee, and state election results, which capped the upside.
Mishra notes that indications suggest a continuation of consolidation in the index, given the pressure in key sectors like banking and IT, along with crude oil prices remaining elevated. Immediate support is placed at 23,800, followed by 23,500, while the upside appears capped in the 24,600-24,800 zone. Traders are advised to maintain a sector- and theme-specific approach and prefer hedged strategies until clearer directional signals emerge.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Investor Takeaway
Investors should be cautious of the market's volatility and keep an eye on geopolitical developments.
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