On Friday, foreign institutional investors (FIIs) sold Indian equities worth Rs 4,440.47 crore, while domestic institutional investors (DIIs) were net buyers, purchasing shares worth Rs 6,003.53 crore. This activity helped the benchmark indices close with gains despite strong selling pressure in the pharma and health sectors.
The Nifty rose by 64.60 points or 0.27% to close at 23,719.30, and the BSE Sensex increased by 231.99 points or 0.31% to settle at 75,415.35.
The cautious sentiment among investors is attributed to ongoing geopolitical tensions, which have kept crude oil prices elevated. Pabitro Mukherjee, Associate Vice President - Research at Bajaj Broking, noted that the Indian Rupee weakened further, hitting a new all-time low against the US Dollar. Rising bond yields, driven by inflation concerns and potential prolonged high interest rates, have also contributed to investor unease.
“The Indian Rupee further weakened during the week, slipping to a fresh all-time low against the US Dollar. Meanwhile, a sharp rise in bond yields, driven by concerns over rising inflation and the possibility of prolonged higher interest rates, kept investors on edge.”
Pabitro Mukherjee, Associate Vice President - Research at Bajaj Broking
Bajaj Broking anticipates that institutional activity will be largely influenced by global developments. The progress or deterioration of U.S.–Iran negotiations will be a key factor to watch, given its potential impact on geopolitical stability and crude oil price volatility.
In 2026, March witnessed the worst FII sell-off of the year, with an exodus of Rs 1,17,775 crore. April followed with outflows of Rs 60,847 crore. However, February saw foreign investors as net buyers, purchasing shares worth Rs 22,615 crore. January recorded sales of Rs 35,962 crore by FIIs.
In 2025, FII buying trends were inconsistent, with an overall bearish trend. Foreign investors withdrew Rs 1,66,286 crore from Indian markets, influenced by trade deal delays and premium valuations.
Background
The Indian stock market has been experiencing volatility due to various global and domestic factors. Geopolitical tensions, particularly involving the U.S. and Iran, have been a significant concern for investors, impacting crude oil prices and currency stability.
Looking ahead, institutional flows are expected to remain sensitive to developments in U.S.–Iran relations and oil price movements, which could significantly impact market dynamics.
