Foreign Investors Sell Indian Equities Worth Rs 1,043 Crore, Domestic Investors Purchase Rs 3,821 Crore on May 27

Market Update: May 27

Foreign institutional investors (FIIs/FPIs) net sold shares worth Rs 1,043 crore on May 27, while domestic institutional investors (DIIs) net bought shares worth Rs 3,821 crore. The trading session saw DIIs purchasing shares worth Rs 16,893 crore and selling shares worth Rs 13,072 crore. In contrast, FIIs bought shares worth Rs 11,419 crore, but sold shares totalling Rs 12,461 crore.

Year-So-Far Performance

For the year so far, 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.

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Market Performance

Domestic equity benchmarks ended largely flat on May 27 amid monthly derivatives expiry and lingering geopolitical uncertainty. The Nifty 50 slipped 0.03%, while broader markets outperformed, with the Midcap100 and Smallcap100 indices gaining 0.4% and 0.2%, respectively.

According to Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, a gradual recovery in domestic markets could sustain if crude oil prices remain soft and concerns around global energy supplies continue to ease. However, investor sentiment is likely to remain guarded due to mixed signals from the ongoing US-Iran negotiations and fresh US military strikes in southern Iran.

Markets have begun to price out some of the geopolitical premium seen last week, but the path ahead remains narrow as the underlying conflict drivers remain unresolved. Concerns around prolonged supply disruptions and delays in normalising shipping flows through the Strait of Hormuz continue to keep energy markets highly sensitive to geopolitical developments.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Key Performers

The Nifty Midcap100 index touched a fresh record high of 62,704 during the session, reflecting continued resilience in broader markets despite volatility in benchmark indices. Metals and power stocks emerged as key outperformers during the session, with the Nifty Metal index rallying 3% to a record high, supported by stronger metal prices, infrastructure-led demand and healthy Q4FY26 earnings.

The BSE Power index also gained nearly 3% to hit a fresh high amid strong execution trends and sustained order inflows across power equipment and transmission and distribution companies.

Market Sentiment

Khemka further said that fuel-intensive sectors such as aviation, paints, chemicals, logistics and cement could remain sensitive to elevated crude oil prices, while oil marketing companies may continue to face pressure on margins if energy prices remain volatile.

Policy and Capital Markets

On the policy and capital markets front, he highlighted that the government's proposed stake sale in LIC and the recently announced Coal India OFS are important developments being tracked by the market. Coal India shares fell sharply after the government announced an OFS of up to 2% at a steep discount to the previous closing price, which weighed on sentiment in the stock.

The Quad's announcement of a $20 billion critical minerals framework is a constructive long-term development for India's metals, mining and clean-tech ecosystem, as it aims to reduce dependence on China-dominated supply chains and could support investment into strategic minerals and battery materials infrastructure over the medium term.