Business

Foreign Investors Return To Indian Equities; FII Buying Outpaces DII Activity

On Tuesday, 9 September, Foreign Institutional Investors (FIIs/FPIs) strongly boosted their equity holdings in Indian markets, registering net purchases of approximately ₹2,050 crore, according to provisional NSE data.

In contrast, Domestic Institutional Investors (DIIs) showed restrained activity, with net buying of only ₹83 crore.

Despite limited DII engagement overall, during the trading session, DIIs purchased ₹10,423 crore worth of equities and sold ₹10,340 crore.

FIIs, meanwhile, bought ₹11,897 crore and sold ₹9,846 crore—a display of assertive confidence.

Notably, this marks the first time since 26 June that FIIs have outpaced DIIs in buying momentum.

The day also happened to be the NSE’s first Tuesday expiry for the month, potentially influencing derivative positioning and volume.

Markets Rally on Infosys Buyback and Sector Strength

The equity indices responded positively. The Nifty 50 surged 95 points to close at 24,869, while the Sensex climbed 314 points, ending at 81,101.

IT and pharmaceutical stocks led the rally, offsetting cautious performance in autos and real estate.

Investor optimism was further bolstered after Infosys revealed plans to consider a share buyback, prompting significant buying in its stock and across IT counters.

Midcap and Smallcap indices mirrored the uptrend, each rising approximately 0.2%, suggesting strong investor interest beyond large-cap names.

Choice Equity Broking analyst Amruta Shinde observed measured volatility, with India VIX holding steady at around 10.8, signalling a stable sentiment.

The Nifty formed a bullish candle on its daily chart, indicating positive momentum.

Despite resistance in the 24,900–25,000 zone, the index remained supported above its 10-day and 20-day EMAs near 24,730.

Immediate support is noted near 24,620, though a break above 25,000 would strengthen the uptrend.

Year-to-date figures show FIIs/FPIs have net sold ₹2.13 lakh crore worth of equities, while DIIs continue to support the market with net buying of ₹5.23 lakh crore.

Tuesday’s surge in FII activity signals renewed foreign confidence in Indian equities.

If that momentum sustains, especially supported by domestic investors and favourable technicals, markets could challenge the 25,000 level on the Nifty.

Key developments to monitor include Infosys’s buyback board meeting on 11 September and global cues shaping investor sentiment.

Also Read: Railways Reaches 99% Electrification; Final Stretch Nears Completion

Anamika Agarwala

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