Foreign Institutional Investors Suffer Net Outflow of Rs 2,408 Crore from Indian Equities, While Domestic Institutional Investors Post Net Purchase of Rs 1,361 Crore

Market Performance Remains Volatile Amid Elevated Global Uncertainty

Foreign institutional investors (FIIs/FPIs) sold shares worth Rs 2,408 crore on May 26, while domestic institutional investors (DIIs) net bought shares worth Rs 1,361 crore. The trading session saw DIIs purchasing shares worth Rs 15,537 crore and selling shares worth Rs 14,175 crore. In contrast, FIIs bought shares worth Rs 13,127 crore, but sold shares totalling Rs 15,535 crore.

Year-to-Date Performance

Market analysts suggest that a gradual up-move in domestic markets could continue if crude oil prices remain soft and concerns surrounding global energy supplies continue to ease. However, investor sentiment is likely to remain cautious due to mixed signals emerging from the ongoing US-Iran negotiations, along with recent US strikes on Iran, which are keeping geopolitical risks elevated across global financial markets.

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The Nifty remained volatile throughout the session and slipped below the 24,000 mark to close at 23,913 (-0.5%) amid monthly F&O expiry, profit booking at higher levels, and mixed global cues. Despite this weakness, the Nifty Midcap100 index surged to a fresh all-time high of 62,365, supported by growth-oriented stocks such as Adani Total Gas, Exide Industries, Naukri, KPIT, and JSW Energy.

The resilience in broader markets despite prevailing global uncertainties reflects sustained domestic liquidity participation. Fuel-intensive sectors such as aviation, paints, chemicals, logistics, and cement are expected to remain under pressure due to rising input costs, while oil marketing companies may continue to face margin pressure if crude oil prices remain elevated. Overall, markets continue to remain resilient despite elevated global uncertainty, supported by strong domestic liquidity and selective buying in broader markets. However, persistent geopolitical tensions in West Asia, inflationary concerns, and mixed signals from the ongoing US-Iran negotiations are likely to keep investor sentiment cautious and market volatility elevated in the near term.