Foreign investors ended a four-day selling streak on July 28, purchasing a net Rs 755 crore in Indian equities. Domestic institutional investors also added Rs 1,664 crore, helping stabilize markets despite benchmark indices closing slightly lower. Investor caution remains high ahead of the upcoming US Federal Reserve policy meeting.
Detailed Coverage
Indian equity markets concluded the July 28 session with marginal declines, even as institutional buying activity remained robust. The Sensex dipped by 69.86 points to end at 76,765.92, while the Nifty fell by 10.60 points to 23,985.35. The day was defined by a shift in foreign investor sentiment, with Foreign Institutional Investors (FIIs) becoming net buyers for the first time in five sessions.
Institutional Buying Trends
FIIs purchased shares worth a net Rs 755 crore, a notable change after their recent period of consistent selling. The data shows total gross purchases by FIIs stood at Rs 17,531 crore against sales of Rs 16,776 crore. Meanwhile, Domestic Institutional Investors (DIIs) maintained their supportive role in the market, recording a net purchase of Rs 1,664 crore. This continued accumulation by domestic funds highlights their active participation, with their year-to-date net buying reaching approximately Rs 4.91 lakh crore, contrasting with FIIs, who remain net sellers of nearly Rs 3.50 lakh crore for the same period.
Market Sentiment and Global Triggers
Broad market performance was varied, with the Nifty Midcap 100 index recording a modest gain of 0.1%, while the Nifty Smallcap 100 index faced a minor decline of 0.2%. Trading sentiment was largely constrained by the upcoming US Federal Reserve policy meeting, which has encouraged many investors to maintain a cautious approach rather than taking aggressive new positions. While domestic liquidity provided a buffer, market activity remains highly stock-specific as the ongoing quarterly earnings season continues to drive investor focus.
Oil Prices and Sector Performance
Investors are also observing fluctuations in global commodity prices, specifically Brent crude, which has trended towards $84 per barrel following a reduction in geopolitical tensions. This cooling in energy prices serves as a supportive factor for the Indian economy, which remains a significant importer of oil. Within the domestic sector, the IT index outperformed other segments during the session, benefiting from renewed buying interest. As the market moves toward the next trading day, the primary focus will remain on the outcome of the US Federal Reserve meeting and how incoming corporate earnings results shape sectoral trends.