Pabitro Mukherjee, Associate Vice President - Research, Bajaj Broking
Foreign Institutional Investors (FIIs) remained net sellers last week, offloading ₹75.7 bn based on provisional exchange data. Domestic Institutional Investors (DIIs) were net buyers, purchasing ₹169.5 bn. In the month of May, FIIs have sold a cumulative ₹322.3 bn, while DIIs have bought ₹568.7 bn based on provisional exchange data.
FIIs were net buyer on Monday's session with inflow of ₹28.1 bn. However, they turned net seller in the remaining 4 sessions of the week with outflow of ₹103.8 bn. DIIs remained net buyer in all the five-trading session during last week with net inflow of ₹169.5 bn.
Benchmark indices traded choppy with high volatility swinging between gains and losses as investors navigated heightened market uncertainty and mixed cues across sectors. Nifty during last week traded in the broad range of 23,300-23,850, with the index testing the upper and lower band on multiple occasion and finally close the week at 23719 levels up by 0.3%.
Investor sentiment remained cautious due to persistent geo-political tensions, which continued to keep crude oil prices elevated. The Indian Rupee further weakened during the week, slipping to a fresh all-time low against the US Dollar. Meanwhile, a sharp rise in bond yields, driven by concerns over rising inflation and the possibility of prolonged higher interest rates, kept investors on edge. Overall, global uncertainty and macroeconomic headwinds led to cautious trading activity across the markets. Looking ahead, institutional flows are likely to remain sensitive to developments around US-Iran tensions, oil-price movement.