Indian equity benchmarks ended the week higher as sustained foreign institutional investor (FII) buying supported market sentiment. Foreign investors purchased equities worth Rs 33,340 crore during the week, extending their buying streak to three consecutive weeks after a 10-week selling phase.
Domestic institutional investors (DIIs), however, continued to sell equities for the second straight week. They offloaded shares worth Rs 24,190 crore and remained net sellers across all four trading sessions.
The Nifty gained 0.6 per cent during the week to close at 25,144.3. It touched an intra-week high of 25,424 on Wednesday before investors booked profits at higher levels.
The Bank Nifty outperformed the benchmark, rising 3.7 per cent. Broader markets also recorded strong gains, with the Nifty Midcap 100 advancing 2 per cent and the Nifty Smallcap 100 climbing 2.6 per cent.
Easing Brent crude oil prices supported equities. However, higher-than-expected inflation readings in India and the US limited market gains. Expectations of a rate hike at the Reserve Bank of India’s December policy meeting further influenced investor sentiment.
Analysts said the sustainability of foreign inflows would remain crucial in the coming weeks. Investors will track US-Iran geopolitical developments, crude oil prices, the US Federal Open Market Committee minutes and India’s wholesale price index inflation data for monetary policy cues.
FIIs had purchased approximately Rs 45,960 crore in the previous week. In October, they remained net sellers, recording outflows of Rs 24,475 crore, compared with Rs 58,443 crore a month earlier. DIIs reported net outflows of Rs 28,943 crore during October.
Meanwhile, Citi Research expects the Nifty 50 to reach 28,000 by the end of 2027, supported by strong earnings prospects, lower oil prices and the possibility of slower global AI-related capital expenditure.
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