Foreign institutional investors (FIIs), after purchasing equities worth Rs 19,860 crore in May, have turned net sellers in early June. According to exchange data, FIIs sold shares worth Rs 3,565 crore in the cash market through June 6. This trend highlights their cautious stance amid global cues and domestic uncertainties.
In sharp contrast—and unsurprisingly—domestic institutional investors (DIIs) have stepped up their buying, turning into sustained buyers on every trading day so far in June. Their cumulative purchases have reached Rs 25,510 crore, effectively offsetting the selling pressure from FIIs. This strong DII support is helping keep the markets stable despite global headwinds.
FIIs have also been consistently selling in the debt market due to the narrow differential between US and Indian bond yields, analysts said. Higher yields in the US have made Indian debt less attractive, contributing to continued outflows.
Meanwhile, market sentiment received a major boost from the Reserve Bank's unexpected monetary policy action. The central bank implemented a 50 basis point repo rate cut along with a 100 basis point reduction in the cash reserve ratio (CRR).
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, remarked, “With growth prospects in the US and China looking bleak, India stands out as a resilient economy that can deliver over 6% growth in FY26. The only concern is the high valuations, which leave little room for the rally to continue.”
Markets consolidated for the third consecutive week but managed to close higher, thanks to the RBI’s pro-growth stance.
Looking ahead, investors are expected to monitor key macroeconomic data, particularly CPI inflation, and the progress of the monsoon—both of which could influence rural consumption trends.
"Technical charts suggest that the Nifty is poised for a breakout above 25,200, which could open the door to further gains," said Ajit Mishra, SVP of Research at Religare Broking. However, support remains strong around 24,400–24,600.
With DII inflows overshadowing FII selling and the RBI signaling confidence in growth, market experts suggest a "buy on dips" approach—while staying cautious in sectors exposed to global headwinds.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
In sharp contrast—and unsurprisingly—domestic institutional investors (DIIs) have stepped up their buying, turning into sustained buyers on every trading day so far in June. Their cumulative purchases have reached Rs 25,510 crore, effectively offsetting the selling pressure from FIIs. This strong DII support is helping keep the markets stable despite global headwinds.
FIIs have also been consistently selling in the debt market due to the narrow differential between US and Indian bond yields, analysts said. Higher yields in the US have made Indian debt less attractive, contributing to continued outflows.
Meanwhile, market sentiment received a major boost from the Reserve Bank's unexpected monetary policy action. The central bank implemented a 50 basis point repo rate cut along with a 100 basis point reduction in the cash reserve ratio (CRR).
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, remarked, “With growth prospects in the US and China looking bleak, India stands out as a resilient economy that can deliver over 6% growth in FY26. The only concern is the high valuations, which leave little room for the rally to continue.”
Markets consolidated for the third consecutive week but managed to close higher, thanks to the RBI’s pro-growth stance.
Looking ahead, investors are expected to monitor key macroeconomic data, particularly CPI inflation, and the progress of the monsoon—both of which could influence rural consumption trends.
"Technical charts suggest that the Nifty is poised for a breakout above 25,200, which could open the door to further gains," said Ajit Mishra, SVP of Research at Religare Broking. However, support remains strong around 24,400–24,600.
With DII inflows overshadowing FII selling and the RBI signaling confidence in growth, market experts suggest a "buy on dips" approach—while staying cautious in sectors exposed to global headwinds.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
