FIIs make robust buying of ₹2,636 crore in Indian stocks today; DIIs extend selling

Foreign institutional investors (FIIs) have made yet another robust buying to the tune of more than ₹2,636 crore in Indian stocks on Friday. On the other hand, domestic institutional investors (DIIs) extended their selling with an outflow of nearly ₹772.5 crore. Sensex and Nifty 50 witnessed a strong bullish tone, spiking to a new all-time high driven by IT stocks.

As per the NSE data, cumulatively, FII buying value stood at ₹12,486 crore, and selling value came in at ₹9,849.57 crore. Hence, an inflow of ₹2,636.43 crore was recorded on Friday.

Meanwhile, DIIs bought equities worth ₹7,333.85 crore, however, offloaded ₹8,106.30 crore during the day -- resulting in an outflow of ₹772.45 crore.

Strong buying in Indian IT stocks and controlled inflation alongside robust foreign funds flow lifted Indian markets. Sensex jumped by 502.01 points or 0.77% to end at 66,060.90. While Nifty 50 closed at 19,564.50, soaring by 150.75 points or 0.78%.

Talking about current market performance, Ajit Mishra, SVP - Technical Research, Religare Broking said, "Markets ended the final session on a strong note and gained nearly a percent. After the initial uptick, Nifty traded muted in the middle but a sharp surge in the last half an hour completely changed the tone. Consequently, Nifty settled at a new high i.e. 19,564.50 levels. Most sectors ended higher wherein IT pack was the highlight, followed by metal and realty pack. The broader indices were also in sync and gained in the range of 1.2%-1.5%."

On the previous day, FIIs invested ₹2,237.93 crore in Indian equities, but DIIs sold ₹1,196.68 crore.

For next week's trading session, Mishra said, "It is a firm close but we need sustainability above 19550 in Nifty for continuation of the up move. The prevailing buoyancy in global markets combined with rotational buying across sectors is favoring the same. We thus reiterate our positive view and suggest focusing on identifying quality stocks across sectors."

As per Vikas Jain, Senior Research Analyst at Reliance Securities, the earnings season will pick up pace in the coming days. The economy is getting a capex push from India Inc as companies get down to pumping up spend amid rising demand. Meanwhile, India's consumer price index (CPI) inflation rises for the first time in five months to 4.81% in June 2023. The rise in inflation is higher than the street's expectations of 4.58%, nevertheless, the CPI print is still below RBI's upper tolerance limit of 6%. CPI was pushed higher than expected due to a less supportive base and the onset of a surge in vegetable prices. Food inflation spiked to 4.49% in June.