FPIs Turn Net Buyers, Acquire Equities Worth Rs 105 Crore
After two sessions of selling, foreign portfolio investors (FPIs) have finally turned net buyers in the Indian stock market, as they acquired equities worth Rs 104.49 crore, according to provisional data from the National Stock Exchange (NSE).
This sudden shift in FPI sentiment is a welcome relief for the domestic market, which had been struggling to find direction in recent days. The FPIs’ buying spree is expected to have a positive impact on the market’s overall sentiment, providing a much-needed boost to investor confidence.
Domestic Institutional Investors Continue Buying Spree
In a separate development, domestic institutional investors (DIIs) continued their buying spree, purchasing stocks worth Rs 1,477.6 crore for the seventh consecutive session.
This buying momentum is expected to continue, driven by the DIIs’ optimism about the Indian economy and their confidence in the market’s future prospects.
FPIs’ Selling Streak Continues
Despite their recent buying spree, FPIs have still been net sellers of Indian equities in July so far, with a total outflow of Rs 1,446 crore. This selling pressure is largely attributed to their concerns about the Indian economy’s growth prospects and the impact of global events on the stock market.
In the previous month, FPIs had sold equities worth Rs 14,590 crore, as per National Securities Depositories Ltd. (NSDL) data. In 2025 so far, they have net sold equities worth Rs 79,347 crore, indicating a significant decline in their appetite for Indian equities.
Financial Services Stocks Attract FPI Inflows
In June, financial services stocks received the largest share of FPI inflows, accounting for 61% of total FPI flows during the month. This is the fourth consecutive month of net buying by FPIs in the financial services sector, a clear indication of their confidence in the sector’s growth prospects.
This buying spree in financial services stocks is expected to continue, driven by the sector’s dominance in the Indian economy and its potential for long-term growth.
Market Reacts Positively to FPI Buying Spree
The NSE Nifty 50 and BSE Sensex indices snapped their four-session losing streak to close higher on Tuesday, driven by gains in auto and financial stocks. HCL Technologies Ltd. took a beating after its June quarter disappointment.
The NSE Nifty 50 ended 113.5 points or 0.45% higher at 25,195.8, while the BSE Sensex closed 317.45 points or 0.39% up at 82,570.91.
In conclusion, the FPIs’ sudden shift to net buying is a positive development for the Indian stock market, providing a much-needed boost to investor confidence. The market’s reaction to this buying spree is a clear indication of its potential to drive growth and momentum in the coming days.
As investors, it’s essential to stay informed about the latest market developments and sentiment shifts. By doing so, you can make informed investment decisions and navigate the market with confidence.
