December begins with sustained DII buying, while FIIs sell ₹3,234 cr in equities

In the first week of December, Domestic Institutional Investors (DIIs) continued to demonstrate strong buying interest, purchasing equities worth ₹5,017 crore. This sustained buying activity helped support the heavy market sell-off by Foreign Institutional Investors (FIIs).

Over the course of the week, FIIs offloaded a total of ₹3,234 crore in equities. The bulk of this was seen on December 6, when they sold ₹1,830 crore, as markets reacted to the Reserve Bank of India maintaining its repo rate despite the slowdown in India’s economic growth, though the central bank cut its cash reserve ratio by 50 basis points to increase liquidity in the banking system.

The foreign outflows mark a significant reversal from the foreign inflows seen in the second half of November. In the last two weeks of November, foreign institutional investors (FIIs) purchased around ₹1,311 crore, contrasting sharply with their heavy selling of ₹23,913 crore in the first half of the month.

Also Read :

FIIs turn buyer in financial, IT, FMCG stocks in second half of November

Meanwhile, DIIs remained consistent net buyers, injecting a total of ₹5,017 crore in the equities market this week. Their sustained buying was particularly strong on December 5, when they bought ₹1,659 crore worth of stocks, reinforcing their key role in supporting market momentum, particularly during times of foreign pullbacks.

Impact on markets

The DII buying helped the headline domestic indexes gain for the third consecutive week. The Nifty 50 and Sensex rose 2% each and recorded their biggest weekly gains in six months.

On Friday, the Nifty 50 and Sensex erased some gains to end flat and snapped a five-session gaining streak. The Sensex closed 57 points lower at 81,709, while the Nifty slipped 31 points to finish at 24,678.

Also Read : Nifty 50, Sensex snap five-session gaining streak as RBI maintains repo rate