24 May,2026 06:18 PM IST | Mumbai | Tarun Verma
Representational image. File pic
With the Indian stock market also facing an impact following the US and Israel attack on Iran, the major reason, according to the experts, is the recurring withdrawal of heavy investments by the Foreign Institutional Investors (FIIs).
Amid the continuing global concerns, FIIs this week continued their selling streak in Indian equities last week, offloading shares worth Rs 75.7 billion, according to provisional exchange data.
In contrast, Domestic Institutional Investors (DIIs) remained strong buyers, infusing Rs 169.5 billion into the market during the same period.
Pabitro Mukherjee, Associate Vice President-Research at Bajaj Broking, highlighted that for the month of May so far, FIIs have recorded cumulative net outflows of Rs 322.3 billion, while DIIs have absorbed selling pressure with net purchases totalling Rs 568.7 billion, highlighting sustained domestic support for equities amid global volatility.
The weekly flow data showed a highly uneven pattern. FIIs were net buyers on Monday with inflows of Rs 28.1 billion but reversed course sharply over the remaining four sessions, registering net outflows of Rs 103.8 billion, as per Bajaj Broking and Research.
Domestic Institutional Investors (DIIs), on the other hand, maintained consistent buying interest throughout the week, emerging as net buyers in all five trading sessions and providing crucial support to the market.
Benchmark indices witnessed choppy trading throughout the week as investors navigated heightened uncertainty across global and domestic cues. The Nifty 50 moved within a broad range of 23,300 to 23,850, repeatedly testing both ends of the band before ending the week at 23,719, marking a modest gain of 0.3 per cent.
While the market sentiment remained cautious amid multiple headwinds, including persistent geopolitical tensions that kept crude oil prices elevated. The Indian rupee also weakened during the week, slipping to a fresh record low against the US dollar, adding pressure on investor sentiment.
At the same time, a sharp rise in bond yields, driven by concerns over sticky inflation and expectations of prolonged higher interest rates, further weighed on market confidence, as per Pabitro Mukherjee.
Looking ahead, institutional flows are expected to remain highly sensitive to developments surrounding US-Iran geopolitical tensions, crude oil price movements, and global interest rate expectations, which are likely to dictate near-term market direction.
The associate vice president-research at Bajaj Broking further added, "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 and oil-price movement.
