Domestic institutional investors (DIIs), however, remained supportive, investing ₹51,000 crore during the month and helping cushion the market from sharper declines. The same pattern was visible last week, with FIIs selling around ₹13,000 crore, while DIIs infused close to ₹11,500 crore.
New Delhi:Foreign institutional investors (FIIs) continued their prolonged selling trend in April, marking the tenth consecutive month of net outflows as they offloaded ₹70,100 crore from Indian equities, according to provisional exchange data.
Domestic institutional investors (DIIs), however, remained supportive, investing ₹51,000 crore during the month and helping cushion the market from sharper declines. The same pattern was visible last week, with FIIs selling around ₹13,000 crore, while DIIs infused close to ₹11,500 crore.
Analysts link the sustained FII outflows to macroeconomic pressures such as a weakening rupee and rising crude oil prices. Pabitro Mukherjee noted that foreign investors have been net sellers throughout the calendar year so far, pulling out over ₹2.4 lakh crore.
Crude oil prices climbed sharply last week after signals from the White House that Donald Trump had directed officials to prepare for a prolonged blockade of Iranian ports. This development has raised concerns about supply disruptions, especially through the critical Strait of Hormuz, a key global oil transit route.
The surge in oil prices and escalating geopolitical tensions dampened investor sentiment, leading to consistent FII selling across all trading sessions last week. As a result, benchmark indices ended lower. The Nifty 50 declined 0.73% over the week to settle at 23,997, while the BSE Sensex dropped 582 points, or 0.75%, to close at 76,913, losing nearly 1% for the week.
Looking ahead, institutional flows are expected to remain closely tied to global cues, particularly developments in US–Iran relations, which could influence crude oil prices and overall market volatility. The outcome of upcoming state assembly elections is also likely to play a role in shaping near-term market direction.