Markets Stay Under Pressure Despite Local Support, Domestic Investors Step In Strongly As Foreign Money Continues To Exit
Indian markets remained weak due to heavy foreign selling, but strong buying by domestic investors helped limit losses. Global concerns like rising oil prices and geopolitical tensions continue to weigh on sentiment. Markets may stay volatile in the near term, with focus shifting to stable and large-cap stocks.
Indian markets remained weak due to heavy foreign selling, but strong buying by domestic investors helped limit losses. |
Mumbai: Indian stock markets remained under pressure last week, but domestic institutional investors (DIIs) helped prevent a sharper fall. DIIs were strong net buyers, investing around Rs 26,897 crore during the week. Their buying absorbed most of the selling by foreign investors and helped the market stay stable near key levels.
Foreign Investors Continue Selling
On the other hand, foreign institutional investors (FIIs) continued to pull money out of Indian equities. They sold shares worth about Rs 24,596 crore last week. According to Ponmudi R of Enrich Money, this selling is mainly due to global uncertainty, rising bond yields, and a stronger US dollar.
Foreign outflows have been quite aggressive this month. By March 27, total FII outflows crossed Rs 1.13 lakh crore, making it the highest monthly sell-off in FY26 so far. Key reasons include tensions in West Asia and rising crude oil prices.
Market Sentiment Still Weak
Even though DIIs are supporting the market, overall sentiment remains weak. Global factors are continuing to impact investor confidence. Analysts believe that markets may remain volatile in the short term.
Vinit Bolinjkar from Ventura Securities said the market may move in a limited range for now, with volatility staying high until global conditions improve.
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Focus on Safer Stocks
Experts suggest that investors should focus on strong and stable companies, especially large-cap stocks. Domestic-focused sectors may perform better compared to high-risk or highly volatile stocks.
Market Performance
Both benchmark indices, Sensex and Nifty 50, ended lower for the fifth week in a row.
- Nifty fell 1.28% during the week and dropped 2.09% on the last trading day to close at 22,819
- Sensex declined 1.27% during the week and fell 1,690 points (2.25%) to settle at 73,583
Markets remained volatile throughout the week, with small recoveries in between, but overall trend stayed negative.
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