In a tale of contrasting flows, Domestic Institutional Investors (DIIs) are playing the role of market saviors as Foreign Institutional Investors (FIIs) continue their exodus from Indian equities. This domestic bulwark is preventing deeper corrections amid choppy waters.
FIIs offloaded approximately ₹7,000 crore in the cash segment during the week to February 20, including a staggering ₹7,395 crore on February 13. The market endured swings, with Nifty tumbling 1.41% to 25,454 on February 19 due to weaknesses in IT, banking, and automobiles, exacerbated by international headwinds.
Countering this, DIIs injected more than ₹8,000 crore net, with notable activity on February 13 and 16, as per Ventura’s Vineet Bolingkar. By February 20, selective buying lifted Nifty near 25,600, signaling resilience.
Geopolitical trade developments also factored in: The US Supreme Court struck down expansive reciprocal tariffs under IEEPA, limiting impacts to 15% under the US-India interim pact. Indian sectors like apparel, pharmaceuticals, jewelry, and machinery face lingering short-term haze, though it’s milder than feared, leaving room for negotiations. Trump’s hints at alternative tariff routes via other laws amplify uncertainties.
Sensex stabilized above critical supports post a 82,000-82,500 consolidation, eyeing 81,800-82,000 as lower guards and 83,500-84,000 as hurdles. Nifty’s pivot points stand at 25,300 support and 25,700 resistance. Analysts recommend a cautious ‘sell the rally’ approach, monitoring global events and quarterly results closely for directional cues.