Foreign institutional investors (FIIs) turned net buyers of Indian equities on 15 May, purchasing shares worth Rs 1,329 crore, while domestic institutional investors (DIIs) remained net sellers with outflows of Rs 1,958 crore.
During the trading session, DIIs bought shares worth Rs 14,962 crore and sold equities valued at Rs 16,920 crore. Meanwhile, FIIs purchased shares worth Rs 16,300 crore and sold holdings worth Rs 14,970 crore.
However, FIIs remained net sellers last week, offloading Rs 13,580 crore, whereas DIIs were net buyers, purchasing Rs 18,520 crore. In the month of May, FIIs have sold a cumulative Rs 24,660 crore, while DIIs have bought Rs 39,920 crore.
So far in 2026, FIIs have remained net sellers of Indian equities worth Rs 2.64 lakh crore, while DIIs have continued to provide support to domestic markets with cumulative net purchases of Rs 3.72 lakh crore.
“Markets recorded elevated volatility during last week as rising crude oil prices, depreciating rupee, ongoing geopolitical tensions, continued FII outflows and high stakes US–China diplomatic talks in Beijing kept investors cautious,” said Pabitro Mukherjee, Associate Vice President- Research, Bajaj Broking.
Looking ahead, institutional flows are likely to remain sensitive to developments around US–Iran tensions, oil-price trajectories, and quarterly corporate earnings, he added.
Indian benchmark indices ended lower on Thursday. BSE Sensex declined 160.73 points, or 0.21 per cent, to close at 75,237.99, while the Nifty 50 fell 46.10 points, or 0.19 per cent, to settle at 23,643.50.
After touching an intraday high of 23,839.30, markets witnessed profit booking during the second half of the session as concerns over elevated crude oil prices and the rupee hovering near record low levels weighed on sentiment.
For the week benchmark indices remained under pressure, with the Nifty declining 2.20 per cent to close at 23,643.50, while the Sensex dropped 2.70 per cent to settle at 75,237.99.
The sharp rise in crude oil prices above the USD 105-per-barrel mark intensified worries over imported inflation, fiscal stress, and pressure on corporate margins. Persistent foreign fund outflows and weakness in the domestic currency further weighed on investor confidence throughout the week.
Sectoral Sneak Peek
Sectoral performance remained largely negative for the week, reflecting broad-based risk aversion across equities. Realty, IT, and auto witnessed significant selling pressure amid concerns over inflation, higher input costs, and slowing discretionary demand. Export-oriented sectors also remained volatile due to currency fluctuations and global uncertainty.
Defensive themes such as pharma, FMCG, and selective energy and metal counters displayed relative resilience, supported by pricing power and commodity-linked earnings visibility.
Broader markets also witnessed profit booking after their recent outperformance, with smallcaps seeing sharper cuts of nearly 4.5 per cent, while midcaps declined around 2.17 per cent after recently touching record highs.
“Sectorally, defensive themes such as pharma, healthcare, select FMCG, and energy- and metal-linked businesses may continue to offer relative stability. On the other hand, IT, rate-sensitive sectors, and segments exposed to discretionary consumption may continue to remain under pressure amid inflation concerns and slowing demand visibility,” said Ajit Mishra, Senior Vice President, Research, Religare Broking.
Market Mood Ahead
Investor focus has now shifted toward rising inflation risks, driven by higher‑than‑expected WPI prints, ongoing fuel price pass‑through, and elevated bond yields, alongside the potential recalibration of monetary policy stances and possible downgrades to Q1FY27 earnings.
“Expectations of a US rate hike later this year may further accelerate capital outflows from emerging markets. In the near term, markets will closely monitor any follow‑through announcements from the recently concluded US–China summit, which concluded with no major announcements,” said Vinod Nair, Head of Research, Geojit Investments.
Concurrently, any constructive progress toward reopening the Strait of Hormuz will be critical in restoring risk appetite and providing a more durable direction to the markets, he added. |
