FIIs turn net buyers with Rs 600 crore inflow; DIIs add Rs 1,020 crore on Sep 18

As per the latest business developments, Foreign institutional market participants (FIIs/FPIs) turned net buyers of Rs 599.54 crore in the cash market on September 18, while domestic institutional market participants (DIIs) were net buyers of Rs 1,019.69 crore.

FIIs bought shares worth Rs 38,461.63 crore and sold shares worth Rs 37,862.09 crore during the session. DIIs bought shares worth Rs 17,310.04 crore and sold shares worth Rs 16,290.35 crore, according to exchange data.

With Friday’s flows, FIIs have been net sellers of approximately Rs 7,041 crore in September so far, while DIIs have invested around Rs 36,219 crore in the month.

Indian equities ended mixed on Friday. The Nifty 50 advanced 0.3 percent to close at 23,346, extending upside for the third consecutive session, while the BSE Sensex eased marginally. Broader markets outperformed, with the Nifty Midcap 100 and Smallcap 100 rising 1.2 percent and 1.7 percent, respectively. India VIX declined 7.5 percent, indicating softer volatility. Sectorally, Cement (+1.9 percent), Metals (+1.5 percent) and Media (+1.3 percent) led the upside, while IT (-1 percent) remained under pressure amid elevated global yields and concerns around US monetary policy.

Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services, stated:

Indian markets have noted relief during the past three sessions, fuelled by Brent’s retreat as progress on Saudi pipeline repairs and alternative export routes eased fears of a prolonged supply disruption. With the Fed hike now behind us, moderating Treasury yields, crude off its highs and firm domestic liquidity, the market is likely to maintain a cautiously positive bias. That stated, Brent stays above USD 100/bbl, the indian rupee near 96/USD, while geopolitical tensions, global bond yields and foreign investor flows stay key risks.

The external position of India has strengthened materially. Forex reserves rose to a record USD 785.7 billion, aided by dollar inflows through RBI measures, while India’s net US Treasury purchases surged to a record USD 15.2 billion in July from USD 3.39 billion in June, highlighting improved reserve adequacy and providing a cushion against indian rupee volatility.

Global monetary policy stays a key focus after the Bank of Japan boosted rates by 25 bp to 1.25 percent, a 31-year high, while the Bank of England kept rates unchanged at 3.75 percent in a hawkish hold, signalling it could raise rates soon if energy-fuelled inflation persists. This hawkish tilt across major central banks, alongside persistent inflation concerns from elevated energy prices, could keep global bond yields and currency markets volatile.

Markets will track India’s September flash PMI, August infrastructure output, foreign-exchange reserves and bank credit expansion for cues on domestic expansion and liquidity. Globally, US industrial production, consumer sentiment and China’s Loan Prime Rate decision will provide further cues.