FII selling eases but continues for 10th week amid rising crude, geopolitical tensions

Mumbaii: Foreign institutional investors (FIIs) remained net sellers for the 10th straight week, though the quantum moderated to Rs 2,697 crore from Rs 8,991 crore, as benchmark indices fell amid rising Brent crude and global uncertainty.

Domestic institutional investors (DIIs) stayed net buyers for the 10th consecutive week, stepping up purchases to Rs 10,942 crore and absorbing bulk of the foreign selling. FIIs have sold a net Rs 51,466 crore month‑to‑date, against DII net buying of Rs 59,110 crore.

Analysts said that the steady moderation in FII selling offers some comfort in near term, though elevated crude and sharp broader-market weakness keep the downside risk alive.

The Nifty started the week on a negative note and extended losses through the truncated trading week, falling in all four sessions to touch an intra-week low of 22,372 on Friday, before closing the week 2.4 per cent lower at 22,600.

Bank Nifty declined 2.8 per cent during the week, while broader markets underperformed, with the Nifty Midcap 100 and Nifty Smallcap 100 down 5.6 per cent and 7.3 per cent respectively amid broad‑based selling pressure.

Market participants remain keen on the US Federal Reserve’s FOMC policy decision and the Bank of Japan’s rate decision in the coming week.

On the macroeconomic front, US GDP data will be a key focus, while movements in Brent crude prices, developments in the US-Iran and Russia-Ukraine conflicts, and ongoing quarterly earnings will remain key drivers of investor sentiment, said analysts.

A recent report from brokerage Bernstein said Nifty 50 is likely to touch 25,000 in December 2026 down from the previous 26,000 target, adding that reduction in long-term capital gains (LTCG) alone cannot trigger sustained foreign institutional investor (FII) inflows.

ABOUT THE AUTHOR

IANS

[email protected]