Foreign Institutional Investors (FIIs) turned net buyers for the first time in 11 trading sessions on Monday, marking a significant shift from their sustained selling pressure. According to provisional exchange data, FIIs purchased equities worth ₹2,124.98 crore and sold shares worth ₹15,450.15 crore, resulting in net inflows of ₹200.05 crore. This represents a notable turnaround from the previous session when FIIs remained net sellers of ₹1,082 crore while Domestic Institutional Investors (DIIs) purchased equities worth ₹5,341 crore. The return of foreign buying came as easing West Asia tensions and a sharp fall in crude oil prices lifted market sentiment significantly. However, it's important to note that FPIs have offloaded ₹63,450 crore in June so far, highlighting the ongoing volatility in foreign investor sentiment.
Indian benchmark indices extended gains for a second consecutive session on Monday, with the BSE Sensex surging 736 points to close at 76,264 and the Nifty climbing 231 points to settle at 23,854, reclaiming the 23,850 mark. Investor sentiment improved significantly after the United States and Iran confirmed a deal aimed at ending the conflict, easing concerns over a wider regional escalation. The development also triggered a sharp correction in global crude oil prices, with Brent crude falling more than 5%, which is viewed as positive for India, one of the world's largest crude importers, as it helps reduce import costs and ease inflationary pressures.
Domestic Institutional Investors (DIIs) remained strong buyers, recording net purchases of ₹3,189.2 crore on Monday, continuing their impressive streak of support for the Indian markets. According to CNBC TV18, this strong domestic participation helped offset the previous session's foreign selling pressure and contributed significantly to the broad-based market rally. The gains were broad-based, with 14 Nifty constituents advancing more than 2%, and the strength was visible beyond frontline stocks, with the Nifty Midcap Index jumping 782 points to 61,550. Notably, DIIs net bought 16 times more securities than foreign portfolio investors, as per data released by the NSE on Monday, highlighting the substantial domestic investor confidence in the current market environment.
Heavyweights including Reliance Industries, Mahindra & Mahindra and Maruti Suzuki were among the biggest contributors to the benchmark rally, with the gains being broad-based across sectors. The decline in crude oil prices sparked buying in oil marketing companies and other sectors sensitive to fuel prices, while upstream energy producers remained under pressure. Market breadth remained firmly positive, with advancing stocks outnumbering decliners by roughly four to one on the NSE. The Indian rupee also strengthened to a one-month high against the US dollar, adding to the positive sentiment across financial markets.
The shift in foreign investor sentiment came after 12 consecutive sessions of selling pressure, with the latest data showing FIIs sold equities worth ₹1,987 crore on June 11. US markets had shown strong performance on Thursday, with the Dow Jones rising 929.97 points or 1.86% to 50,848.75, driven by President Trump's announcement about nearing an agreement with Iran. The current rally reflects improved geopolitical conditions and favorable commodity dynamics, with the sharp correction in crude oil prices providing significant relief to India's import-dependent economy. Market veteran Sameer Arora noted that foreign ownership in some of India's largest companies has declined significantly over the past decade, suggesting that capital is being reinvested within the market rather than pulled out entirely.
