MUMBAI, March 5 — Foreign investors continued to reduce their exposure to Indian equities as FIIs net sell ₹3,753 crore worth of shares, while domestic institutional investors stepped in with strong buying support worth ₹5,153 crore, according to provisional exchange data.
The contrasting institutional activity highlights the diverging strategies between global investors and domestic funds in the Indian stock market. While foreign portfolio investors have been cautious amid global uncertainties, domestic institutions have provided stability by absorbing the selling pressure.
FIIs Net Sell ₹3,753 Crore in Indian Equities
Foreign institutional investors remained net sellers during the trading session, with FIIs net sell ₹3,753 crore worth of equities in the cash market.
Exchange data shows that overseas investors purchased shares worth approximately ₹14,915 crore during the session but sold equities valued at ₹18,668 crore, resulting in the net outflow.
Foreign investors have remained cautious in recent sessions due to global geopolitical developments, commodity price volatility, and changes in global monetary policy expectations.
The continued selling by overseas investors has been a key factor influencing market volatility across several emerging markets, including India.
Domestic Institutional Investors Buy ₹5,153 Crore
In contrast, domestic institutional investors increased their exposure to Indian equities.
DIIs purchased shares worth about ₹18,821 crore during the session while selling stocks valued at ₹13,668 crore, resulting in a net inflow of ₹5,153 crore.
Domestic institutional investors typically include mutual funds, insurance companies, and financial institutions, which play a significant role in providing liquidity and stability to the market.
The strong domestic buying helped offset the impact of foreign investor outflows during the trading session.
Institutional Activity Reflects Market Dynamics
The difference between foreign and domestic investor activity has become a recurring trend in the Indian equity market.
Foreign portfolio investors often respond quickly to global developments such as geopolitical tensions, interest rate changes, and currency movements.
Domestic investors, on the other hand, tend to maintain longer-term investment strategies and often increase exposure during periods of market volatility.
The session in which FIIs net sell ₹3,753 crore demonstrates how domestic institutional participation can balance foreign selling pressure.
Year-to-Date Investment Trends
So far in the current year, foreign investors have remained net sellers in the Indian equity market.
Data indicates that FIIs have sold shares worth approximately ₹54,334 crore on a net basis during the year. In contrast, domestic institutional investors have been consistent buyers.
DIIs have purchased equities worth more than ₹1.21 lakh crore on a net basis so far this year, highlighting the growing influence of domestic investment flows in the Indian market.
The rise of domestic investors, particularly mutual funds and systematic investment plans, has strengthened the resilience of the Indian equity market against global capital outflows.
Market Performance During the Session
The institutional activity coincided with a positive trading session in the Indian stock market.
After several sessions of selling pressure, benchmark indices recovered during the day. The Nifty 50 index rebounded sharply, ending the session around 24,765 after gaining more than 280 points.
The index opened higher amid supportive global cues and maintained a positive bias throughout the trading session.
During the afternoon session, the market extended gains as buying interest increased across several sectors including metals, consumer stocks, and automobiles.
Broader market indices also participated in the recovery, with mid-cap and small-cap stocks recording gains alongside benchmark indices.
Sectoral Performance Across the Market
Sectoral indices displayed broad-based strength during the session.
Most sectors finished the day in positive territory, with metals, consumer durables, and automobile stocks leading the gains.
Mid-cap and small-cap indices also recorded strong performance. The Nifty Midcap 100 and Nifty Smallcap 100 indices advanced more than 1.5%, reflecting wider participation from investors across different segments of the market.
Market breadth improved significantly as the ratio of advancing stocks to declining stocks on the Bombay Stock Exchange climbed above 1.9, indicating strong buying interest across the broader market.
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The day’s institutional activity, with FIIs net sell ₹3,753 crore, underscores the ongoing tug-of-war between global investors and domestic funds in the Indian stock market.