Daijiworld Media Network - New Delhi

New Delhi, May 2: Foreign institutional investors (FIIs) extended their selling streak for the tenth straight month in April, offloading Indian equities worth Rs 70,100 crore, according to provisional exchange data.

In contrast, domestic institutional investors (DIIs) continued to cushion the market impact, emerging as net buyers with investments of around Rs 51,000 crore during the same period. Even last week reflected a similar trend, with FIIs pulling out nearly Rs 13,000 crore, while DIIs infused approximately Rs 11,500 crore.

Market experts attribute the sustained outflows to a weaker rupee and rising crude oil prices. Pabitro Mukherjee of Bajaj Broking noted that FIIs have remained net sellers throughout all four months of the current calendar year, collectively withdrawing over ?2.4 lakh crore.

Rising global tensions have also added pressure. Crude oil prices surged last week after the White House confirmed that Donald Trump had asked officials to prepare for a prolonged blockade of Iranian ports. Such a scenario raises concerns over supply disruptions, especially through the critical Strait of Hormuz, fueling inflation fears and prompting further foreign outflows.

As a result, Indian benchmark indices ended the week on a negative note. The Nifty 50 declined by 0.73% over the week, closing at 23,997, while the BSE Sensex dropped 582 points to settle at 76,913, marking a weekly fall of nearly 1%.

Analysts believe that institutional activity in the coming weeks will largely depend on global developments, particularly progress in US-Iran relations, which could significantly influence oil prices and market volatility. Additionally, the outcome of upcoming state assembly elections is expected to play a key role in shaping near-term market sentiment.