Foreign Institutional Investors Sell Indian Equities Worth Rs 21,106 Crore, Domestic Investors Buy Rs 16,764 Crore

Market Volatility Continues as Foreign Investors Dump Indian Equities

Foreign institutional investors (FIIs/FPIs) net sold Indian equities worth Rs 21,106 crore on May 29, marking a significant shift in investor sentiment. In contrast, domestic institutional investors (DIIs) net bought shares worth Rs 16,764 crore on the same day.

The trading session saw DIIs purchasing shares worth Rs 36,999.70 crore and selling shares worth Rs 20,235.56 crore. Meanwhile, FIIs bought shares worth Rs 89,733.64 crore, but sold shares totalling Rs 1,10,839.50 crore. This significant difference in buying and selling activity by FIIs resulted in a net outflow of funds from the Indian market.

Looking at the year-to-date performance, FIIs have been net sellers of shares worth Rs 2.74 lakh crore, while DIIs have net bought shares worth Rs 3.57 lakh crore. This stark contrast highlights the differing investment strategies of foreign and domestic institutional investors.

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Market analysts are cautioning investors to remain vigilant, with the possibility of benchmark indices remaining range-bound in the coming week. Select midcap and smallcap stocks may continue to outperform, driven by healthy earnings momentum and strong domestic liquidity. However, geopolitical uncertainty, volatility in crude oil prices, and shipping disruptions near the Strait of Hormuz are expected to keep investors cautious.

The RBI's monetary policy decision next week will be closely watched by market participants, along with developments in West Asia, monsoon progress, and inflation risks. These factors will likely influence investor sentiment and determine the direction of the market in the coming days.