Institutional flows in Indian equities driven by global news, DIIs remain strong

NEW DELHI: Institutional activity, in Indian equities is expected to be driven mainly by global news flows in coming days, with developments in US-Iran negotiations remaining a key monitorable due to their potential impact on geopolitical stability and global energy markets, experts said on Saturday.

Foreign institutional investors (FIIs) continues to offload Indian equities. It remained net sellers during last week as it sold Rs 171.4 billion based on provisional exchange data.

“On the other hand, domestic institutional investors (DIIs) provided strong support to the market, emerging as net buyers during last week with investments totalling Rs 97.8 billion based on provisional exchange data,” said Pabitro Mukherjee, Associate Vice President–Research, Bajaj Broking.

The month-to-date trend remain same for the 10th consecutive months with FIIs in the month of April till date have pulled out a substantial Rs 563.6 billion from Indian equities, while DIIs have infused Rs 394.8 billion during the same period, as per provisional exchange data.

According to Mukherjee, geo-political news continues to dominate Institutional flows with President Donald Trump extending the US–Iran ceasefire until Tehran presents a unified proposal to end the conflict with the US and Israel.