On November 29, FIIs sold ₹4,383.55 crore worth of equities, following a substantial sell-off of ₹11,756 crore on 28 November. This sharp reversal came after FIIs injected ₹9,948 crore on Monday and ₹1,157.70 crore on Tuesday, ending a record 38-session net-selling streak.
The initial buying momentum at the start of the week was largely attributed to MSCI index rebalancing, which brought in passive inflows estimated at $2.5 billion. Five Indian companies — Voltas, Oberoi Realty, BSE, Kalyan Jewellers, and Alkem Laboratories — were added to the MSCI Global Standard Index, driving FIIs to make significant purchases.
Also read: FIIs net sell ₹11,756 crore, reversing earlier buys this week in a single day
However, concerns about high valuations and muted earnings growth led to a renewed selling spree by mid-week, dampening optimism about FIIs’ sustained return to Indian equities.
On the other hand, domestic Institutional Investors (DIIs) maintained their bullish stance through the week. DIIs purchased ₹5,723.34 crore on Friday and ₹8,718 crore on Thursday, providing consistent support to the markets.
For the year so far, FIIs have net sold ₹2.99 lakh crore, while DIIs have net bought shares worth ₹5.7 lakh crore.
Despite the volatility in FII flows, Indian equities showed remarkable resilience, ending the week on a positive note. The Nifty50 rose 0.94%, while the BSE Sensex gained 0.87% this week.
Friday’s rally coincided with the release of India’s Q2FY25 GDP data and was led by a broad-based uptrend in large-cap stocks.
The BSE Sensex surged 759.05 points (0.96%) to close at 79,802.79, touching an intraday high of 79,923.90. Similarly, the Nifty50 climbed 216.95 points (0.91%) to settle at 24,131.10 after hitting a session high of 24,188.45.
The rally was supported by strong performances in discretionary sectors, boosted by festive demand, while pharma and healthcare stocks rebounded on attractive valuations and solid earnings.
Also read: India’s Q2 GDP growth slows to a shocking 5.4%, lowest since Q3 FY23
India’s Q2 FY25 GDP growth slowed to 5.4%, the weakest since Q3FY23, significantly missing the 6.5% forecast in the CNBC-TV18 poll. Despite this, the markets shrugged off weak GDP data as it had largely been priced in.
“Investors seem to have discounted the slowdown in growth as the focus shifts to sector-specific earnings and broader economic recovery,” said Vinod Nair, Head of Research, Geojit Financial Services.
