Foreign institutional investors (FIIs) were net buyers for the fourth consecutive trading day on July 31, purchasing shares worth Rs 277.48 crore. Domestic institutional investors (DIIs) also expanded their holdings, investing Rs 2,260.37 crore during the session.
DIIs bought shares worth Rs 19,885.80 crore and sold Rs 17,625.43 crore, resulting in a net inflow of Rs 2,260.37 crore. FIIs purchased shares worth Rs 19,045.51 crore and sold Rs 18,768.03 crore, leading to a net inflow of Rs 277.48 crore.
This buying streak shows that overseas sentiment has improved after the June‑quarter earnings season and the easing of global risk concerns. The trend is a positive sign for the market after a volatile start to the month.
FIIs ended July on a stronger footing, returning as net buyers over the past four sessions and helping to offset this year’s cumulative outflows. However, year‑to‑date, FIIs remain net sellers, having withdrawn about Rs 3.43 lakh crore, while DIIs have invested nearly Rs 4.90 lakh crore, continuing to provide primary support.
Indian benchmark indices finished the week on a high note. The BSE Sensex gained 236.31 points, or 0.30%, to close at 78,930.67, while the NSE Nifty 50 rose 77.70 points, or 0.32%, to settle at 24,384.30.
Siddhartha Khemka, Head of Research at Motilal Oswal, said that healthy domestic macro indicators and a robust June‑quarter earnings season underpin investor confidence. He expects stock‑specific action to remain driven by earnings and notes that investors will closely watch the RBI’s monetary policy decision, manufacturing and services PMI data, crude oil prices, and geopolitical developments in West Asia next week.
Khemka highlighted that financial stocks led the rally, supported by strong earnings from Bajaj Finance. Easing crude oil prices, a firmer rupee and lower volatility further lifted market sentiment. The Nifty Midcap 100 and Nifty Smallcap 100 each gained about 0.4%, with media, auto and pharma stocks outperforming.
The primary market is expected to stay active next week with listings of Manipal Health Enterprises, Juniper Green Energy and MV Electrosystems, keeping investor interest high.
Overall, the market remains buoyant, driven by strong earnings and improving global sentiment, while domestic investors continue to play a key supporting role.