Foreign institutional investors (FIIs) maintained their position as net buyers of Indian equities on Thursday, acquiring shares valued at approximately ₹3,623.51 crore. This continued inflow from overseas investors underscores sustained foreign interest in Indian markets amid prevailing global and domestic conditions.

Conversely, domestic institutional investors (DIIs) shifted to a net selling stance, breaking a five-session buying streak. This marks the first time in six trading sessions that DIIs have offloaded more shares than they purchased, even as benchmark indices closed in positive territory.

Foreign institutional investors and domestic institutional investors are key participants in India's equity markets, and their trading activity is closely tracked as an indicator of market sentiment and liquidity. FII data and DII data are published regularly based on provisional exchange figures, providing insight into the direction of institutional capital flows. Over recent years, the growing role of DIIs—particularly mutual funds buoyed by rising systematic investment plan (SIP) contributions—has increasingly provided a domestic counterweight to FII movements, reducing reliance on overseas capital for market stability.

The contrasting positions of FIIs and DIIs on Thursday highlight divergent strategies between foreign and domestic institutional participants, despite benchmark indices ending the session in the green. The interplay between these two investor categories often influences market direction and sector-level capital allocation. Sustained FII buying, in particular, can lend support to the rupee by bringing in dollar-denominated inflows, while DII selling may signal profit-booking or portfolio rebalancing by domestic institutions.

Source: CNBC-TV18 Markets