Mumbai, July 4 (IANS) Foreign institutional investors (FIIs) continued to remain net seller during this week, offloading Rs 4,000 crore based on provisional exchange data.

On the other hand, domestic institutional investors (DIIs) were net buyers, purchasing Rs 12,630 crore in the domestic markets.

During June, FIIs sold a cumulative Rs 49,030 crore, while DIIs bought Rs 85,800 crore, based on provisional exchange data.

During current week, except for Friday, FIIs were net seller in rest of the week, while DIIs remained net buyer for 4 out of the five sessions, except for Friday, said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.

“Benchmark Indices extended its gains for the fourth week in a row amid strong global cues and decline in crude oil prices. Brent Oil prices have fallen to levels not seen since the start of the US-Israel war on Iran,” Mukherjee noted.

Looking ahead, institutional flows are likely to remain sensitive to a range of key domestic and global developments.

Investors will closely track the progress of the monsoon season, given its implications for rural demand, agricultural output, and inflation trends, said analysts.

Additionally, the upcoming Q1FY27 corporate earnings season will provide crucial insights into the health of corporate India and the sustainability of earnings growth.

Global factors such as movements in crude oil prices and developments in the ongoing US-Iran peace talks will also remain important, as they could influence inflation expectations, energy costs, and overall risk sentiment.

While risks persist amid downward revisions to earnings growth estimates, monsoon-related inflation concerns, and continued FII caution, much of the visible uncertainty appears to be priced in, leaving room for a constructive read on incremental positives, said market watchers.

Meanwhile, rupee traded stronger by around 22 paise to 95.20, supported by a weaker Dollar Index below 100.50 and easing FII selling pressure in recent sessions.

—IANS

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