Daijiworld Media Network - Mumbai

Mumbai, May 16: Domestic institutional investors (DIIs) provided steady support to Indian equity markets during a volatile week, making net purchases worth Rs 18,520 crore, even as foreign institutional investors (FIIs) continued to pull out funds amid global uncertainty.

According to provisional exchange data, FIIs recorded net equity sales of Rs 13,580 crore during the week. Despite intermittent buying towards the end of the week, their overall stance remained bearish.

In contrast, DIIs maintained a strong buying trend, helping stabilise domestic markets. On a month-to-date basis in May, FIIs have offloaded equities worth Rs 24,660 crore, while DIIs have invested a significantly higher Rs 39,920 crore into Indian stocks.

Market movement during the week showed mixed institutional behaviour. FIIs remained net sellers for the first three trading sessions, with total outflows of around Rs 15,100 crore. However, they briefly turned net buyers in the final two sessions, bringing in inflows of Rs 1,520 crore.

DIIs, meanwhile, stayed largely consistent on the buy side, turning net sellers only on Friday with modest outflows of Rs 1,960 crore. They were net buyers for the remaining four sessions.

Analysts attributed the volatility to multiple global and domestic pressures, including rising crude oil prices, a weakening rupee, geopolitical tensions in West Asia, and uncertainty linked to US-China diplomatic discussions in Beijing.

Benchmark indices reflected the cautious sentiment. The Nifty 50 fell 2.2% (532 points) to close at 23,643.5, while the Sensex dropped 2.7%, losing over 2,000 points to end the week at 75,238.

The Nifty touched an intra-week low of 23,263 midweek before staging a brief recovery, though it failed to sustain momentum through the end of the week.

Market experts said institutional flows are likely to remain sensitive in the coming sessions to developments in global geopolitics, crude oil price fluctuations, and the ongoing corporate earnings season.