Foreign institutional investors (FIIs) continued their selling spree in the Indian stock market on Wednesday, even as domestic markets saw increased buying activity and brushed aside pessimism from the previous session. In contrast, domestic institutional investors (DIIs) remained net buyers, injecting ₹850 crore into Indian stocks.
According to data from the National Stock Exchange (NSE), FIIs collectively purchased ₹10,375.25 crore worth of Indian equities but sold ₹12,006.88 crore, resulting in an outflow of ₹1,631.63 crore. On the other hand, DIIs invested ₹8,104.69 crore and offloaded ₹7,254.83 crore, resulting in an inflow of ₹849.86 crore.
The sustained investment by DIIs, coupled with robust retail buying, is providing support to the Indian stock market, even in the face of FII selling. Despite net institutional selling by foreign investors, the Nifty index has reached record highs this month. Additionally, there has been notable activity in the mid-and small-cap segments, indicating active participation by retail investors in the market rally.
On the trading front, domestic markets closed higher on Wednesday, with the Nifty index surpassing the historic 20,000 mark for the first time. Positive macroeconomic data triggered buying in sectors such as banking, energy, and telecom, contributing to the market’s gains. The Sensex settled at 67,466.99, marking an increase of 245.86 points or 0.37 percent. This marked the ninth consecutive session of gains, representing the longest winning streak in the last five months.
Furthermore, mid and small-cap stocks, which had experienced notable losses in the previous session, resumed their upward trajectory. The BSE Midcap index recorded a gain of 0.19 percent, while the Smallcap index saw a notable rise of 0.85 percent. Key players in the market included Bharti Airtel and Titan Company, which emerged as top gainers, while M&M and L&T were among the major drags.
Recent government data indicated that India’s retail inflation rate declined to 6.83 percent in August, following a 15-month high of 7.44 percent in July. This drop was primarily driven by softer prices of vegetables, although it still remains above the Reserve Bank of India’s comfort zone.
Market analysts are closely monitoring the Nifty index’s movement. Rupak De, Senior Technical Analyst at LKP Securities, highlighted the importance of the 19,900 level as a key support level, with a drop below this level potentially leading to market corrections. He also pointed out that the 20,100-20,150 range is likely to act as resistance, and a clear breakthrough above 20,150 could indicate a sustained upward trend for Nifty.