Currencies

Foreign, domestic investors extend buying spree in Indian equities


Foreign and domestic institutional investors were net buyers in Indian equities on Wednesday, with domestic funds continuing to show stronger momentum, provisional exchange data showed.

Foreign institutional investors (FIIs) made a net purchase of ₹890.93 crore, while domestic institutional investors (DIIs) bought shares worth ₹1,091.34 crore on a net basis.

For the month so far, FIIs have sold Indian equities worth ₹5,869.04 crore, with gross purchases of ₹172,852.35 crore and gross sales of ₹178,721.39 crore. In contrast, DIIs have emerged as firm buyers, net purchasing ₹58,138.87 crore worth of stocks, with gross buying at ₹191,239.94 crore and sales at ₹133,101.07 crore.

According to recent data disclosed by the Securities and Exchange Board of India (SEBI), DIIs have purchased a net ₹2.255 trillion in Indian equities in calendar year 2025 so far, underlining their role in stabilising markets through bouts of foreign selling.

The continued support from domestic institutional investors has helped cushion Indian equities from external shocks, even as global markets remain jittery due to escalating geopolitical tensions in the Middle East.

Domestic investor sentiment has been impacted by rising oil prices following Israeli airstrikes on Iranian nuclear facilities in early June. Brent crude futures spiked over 11% at one point, amid fears of supply disruptions through the Strait of Hormuz — a vital route for global energy shipments. The uncertainty has pressured emerging market currencies, including the Indian rupee, and contributed to volatility across equity and commodity markets globally.

Amit Jain, Co-Founder of Ashika Global Family Office Services, said, The recent Middle East tensions have added volatility to global equities, but this isn’t a time to panic. Historically, such geopolitical shocks cause sharp, short-lived market reactions unless they escalate into wider economic disruptions. Investors should stay disciplined, not reactive, maintaining a balanced portfolio with exposure to defensives, gold, and quality large caps. Market corrections often present opportunities in strong but temporarily mispriced companies. India’s 2025 YTD underperformance follows years of outperformance, and the current phase reflects a healthy reset, especially in mid- and small-caps. India’s structural strengths—GDP growth, macro stability, and domestic demand—remain intact. Gold and silver, despite nearing highs, still offer strategic value as hedges against inflation and currency risk. Sectors like Auto, IT, and Real Estate face pressures, but quality names remain attractive for long-term investors. With DIIs deploying over ₹3 trillion, domestic flows now anchor market direction, reducing reliance on foreign capital.”

Also Read: Sensex Today | Stock Market Highlights: Market ends with minor cuts amid volatility, Nifty holds 24,800



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