Foreign Investors Buy Rs 6,675 Crore of Indian Equities, Market Ends Muted After Volatile Session

On Friday, November 7, 2025, Foreign Institutional Investors (FPIs/FIIs) re-entered the Indian equity market, marking net purchases of Rs 6,675 crore. Domestic Institutional Investors (DIIs) also continued their buying spree, adding shares worth Rs 4,581 crore. This inflow comes despite FIIs being net sellers of Rs 2.47 lakh crore year-to-date, whereas DIIs have been net buyers of Rs 6.38 lakh crore for the year.

The market experienced a volatile session, with equity benchmarks Sensex and Nifty ultimately closing flat. The Sensex shed 95 points to settle at 83,216, and the Nifty closed 17 points lower at 25,492.

Sector-wise, the metal index showed strength, gaining 1.4%, while the IT and FMCG sectors saw minor declines of about 0.5% each. Broader markets performed better, with the Nifty Midcap index rising significantly. Top gainers included Shriram Finance, Adani Enterprises, Tata Steel, Bajaj Finance, and M&M. Conversely, Bharti Airtel, Tata Consumer, Apollo Hospitals, and Tech Mahindra registered declines.

Impact: The return of FIIs as net buyers, coupled with strong DII purchases, provides a positive signal for the Indian stock market, potentially boosting investor confidence and market liquidity. This could lead to increased demand for equities, supporting higher valuations and a potential upward trend in key indices, although intraday volatility suggests caution remains. Impact rating: 8/10 Difficult terms: FPIs/FIIs (Foreign Portfolio Investors/Foreign Institutional Investors): These are investors based outside India who invest in Indian securities like stocks and bonds. They play a significant role in market liquidity and direction. DIIs (Domestic Institutional Investors): These are institutions based within India, such as mutual funds, insurance companies, and pension funds, that invest in the Indian stock market. Sensex: A stock market index representing the performance of 30 large, well-established, and financially sound publicly traded companies listed on the Bombay Stock Exchange (BSE). Nifty: A benchmark stock market index representing the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange (NSE). Broader markets: Refers to smaller companies or less frequently traded stocks compared to large-cap stocks that make up major indices like the Sensex and Nifty. Midcap index: An index that tracks the performance of mid-sized companies, typically falling between large-cap and small-cap companies in terms of market capitalization.