Despite relentless FII outflows totaling nearly 30,000 crore rupees last week, India’s equity markets exhibited impressive structural fortitude. This resilience shines through amid soaring global uncertainties and currency pressures, as per market experts.
The week ending March 20 saw FIIs in full risk-averse mode, with net sales hitting 29,718.9 crore. A strengthening dollar index battered the rupee to 93.71, its weakest ever. But domestic players stepped up: DIIs absorbed the selling with 30,269.23 crore in net buys, propping up the Nifty to close at 23,114.50 (+0.49%).
Vineet Bolingkar from Ventura Securities emphasized how the index preserved gains despite the turmoil. Markets opened the week optimistically, supported by eased Strait of Hormuz disruptions. Three green sessions gave way to Thursday’s bloodbath, which clawed back profits, culminating in Friday’s choppy trading.
Benchmarks ended nearly flat with a bearish tilt: Nifty down 0.16% at 23,114.50, Sensex off 0.04% at 74,532.96. Geopolitical flares from Israel’s attack on Iranian oil facilities reignited crude prices near $119/barrel, though they softened later. Ongoing West Asia strife keeps Brent around $107.
Reliance Broking’s Ajit Mishra pointed to rupee depreciation, feeble global signals, and persistent FII exits as key drags. India’s VIX at 22.81 suggests a floor is forming. Investors should stay vigilant, focusing on quality large-caps and defensive sectors.
Looking ahead, analysts predict range-bound action between 22,800 and 23,300. Positive momentum hinges on steady oil prices and rupee recovery. This episode highlights the growing dominance of domestic flows in anchoring India’s markets against foreign whims.