Foreign and domestic institutional investors collectively pumped ₹2,537.85 crore into Indian equities on July 31, 2026. This sustained buying helped benchmark indices close higher, signaling continued market resilience despite earlier volatility in the month.
Indian stock markets witnessed strong support from institutional investors on July 31, 2026, as both foreign and domestic participants turned net buyers. Foreign Institutional Investors (FIIs) invested ₹277.48 crore in equities, marking their fourth consecutive session of net purchases. Simultaneously, Domestic Institutional Investors (DIIs) showed even stronger conviction, adding ₹2,260.37 crore to their portfolios. This combined inflow provided a significant boost to market sentiment.
The benchmark BSE Sensex closed at 78,930.67, up by 236.31 points, while the NSE Nifty 50 settled at 24,384.30, gaining 77.70 points. The buying activity on the final day of the month helped mitigate the impact of earlier market volatility, reinforcing a trend of resilience in the domestic equity landscape.
Year-to-Date Institutional Trends
While the late-July buying is a positive sign, the broader annual picture remains varied. On a year-to-date basis, FIIs remain net sellers, having withdrawn approximately ₹3.43 lakh crore from Indian equities throughout 2026. In contrast, DIIs have consistently acted as a pillar of support for the market, with total net investments reaching nearly ₹4.90 lakh crore so far this year. This consistent domestic buying has played a critical role in absorbing selling pressure from overseas investors.
Drivers and Future Focus
Market experts point to a combination of factors supporting this recent institutional activity. Solid June-quarter corporate earnings have provided fundamental support to valuations, while a moderation in global risk concerns and cooling crude oil prices have improved the overall macro environment.
As the market enters the new month, investors are shifting their focus toward upcoming triggers. Key events to monitor include the Reserve Bank of India's (RBI) interest rate policy decisions, which influence liquidity and borrowing costs, and Purchasing Managers' Index (PMI) data, which provides a health check on manufacturing and services activity. Additionally, any shifts in geopolitical stability will remain a critical factor for global liquidity flows, which directly influence FII sentiment toward emerging markets like India.