Domestic Institutional Investors Sustain Indian Nifty Amid Foreign Outflows

India’s equity markets posted modest weekly gains, with the Nifty 50 index closing at 23,719, up about 0.3%. Despite foreign institutional investors (FIIs) net selling roughly $574 million (around ₹4,900 crore) during the week, domestic institutional investors (DIIs) bought about ₹6 bn of shares, cushioning the market.

IT stocks led sectoral performance, rising 4.3%, while real estate added 2.4%. Media and FMCG fell 4.3% and 1.6% respectively. The rupee appreciated 0.28% to 95.71 per dollar as oil prices hovered between $104 and $114 a barrel, adding pressure on India’s import‑heavy economy and pushing the rupee to a recent low of 96.89.

Analysts note that the resilience stems from growing domestic SIP flows, pension fund purchases and retail participation, which have altered market dynamics. However, heightened geopolitical tension over the US‑Iran conflict and elevated global bond yields keep the broader outlook fragile.