Domestic institutional investors (DIIs) extended their buying streak in Indian equities on Wednesday, clocking net purchases worth ₹2,382.40 crore, while foreign institutional investors (FIIs) recorded modest net outflows of ₹208.47 crore, according to exchange data.
The strong DII interest continues to provide a cushion to Indian markets, even as foreign inflows remain volatile. On Tuesday, FIIs had posted net inflows of ₹1,076.18 crore, but these were preceded by heavy outflows earlier in the week.
So far in June, FIIs have been net sellers to the tune of ₹4,575.59 crore, while DIIs have bought equities worth ₹16,170.95 crore, reinforcing the domestic support underpinning recent market strength.
Here’s a breakdown of daily net flows this week:
According to a recent note from Motilal Oswal Financial Services (MOSL), May marked the third consecutive month of positive foreign inflows, with FIIs investing $1.7 billion into Indian equities. DIIs, meanwhile, saw net inflows of $7.9 billion in May — their 22nd straight month of positive flows, and the third-highest monthly inflow on record.
Analysts attribute the recent rally in the broader markets in part to this revival in FII sentiment over the past two to three months. However, on a year-to-date basis, FIIs remain net sellers to the tune of $11 billion, while DIIs have added $33 billion to Indian equities.
These flows come amid elevated market valuations, with the Nifty 50 trading at a one-year forward price-to-earnings (P/E) multiple of 21.2x — about 3% above its long-period average (LPA) of 20.7x. Broader market indices show even sharper premiums: the Nifty Midcap 100 and Nifty Smallcap 100 are trading at 29.3x and 25.8x forward P/E, commanding premiums of approximately 30% and 60% over their respective LPAs, the note said.
Despite high valuations, liquidity from domestic institutions and selective foreign interest continues to support Indian equities near record highs.
Also Read: Nifty settles above 24,700 in rangebound trade, midcaps outperform
The strong DII interest continues to provide a cushion to Indian markets, even as foreign inflows remain volatile. On Tuesday, FIIs had posted net inflows of ₹1,076.18 crore, but these were preceded by heavy outflows earlier in the week.
So far in June, FIIs have been net sellers to the tune of ₹4,575.59 crore, while DIIs have bought equities worth ₹16,170.95 crore, reinforcing the domestic support underpinning recent market strength.
Here’s a breakdown of daily net flows this week:
- June 5: FIIs -₹208.47 crore | DIIs +₹2,382.40 crore
- June 4: FIIs +₹1,076.18 crore | DIIs +₹2,566.82 crore
- June 3: FIIs -₹2,853.83 crore | DIIs +₹5,907.97 crore
- June 2: FIIs -₹2,589.47 crore | DIIs +₹5,313.76 crore
According to a recent note from Motilal Oswal Financial Services (MOSL), May marked the third consecutive month of positive foreign inflows, with FIIs investing $1.7 billion into Indian equities. DIIs, meanwhile, saw net inflows of $7.9 billion in May — their 22nd straight month of positive flows, and the third-highest monthly inflow on record.
Analysts attribute the recent rally in the broader markets in part to this revival in FII sentiment over the past two to three months. However, on a year-to-date basis, FIIs remain net sellers to the tune of $11 billion, while DIIs have added $33 billion to Indian equities.
These flows come amid elevated market valuations, with the Nifty 50 trading at a one-year forward price-to-earnings (P/E) multiple of 21.2x — about 3% above its long-period average (LPA) of 20.7x. Broader market indices show even sharper premiums: the Nifty Midcap 100 and Nifty Smallcap 100 are trading at 29.3x and 25.8x forward P/E, commanding premiums of approximately 30% and 60% over their respective LPAs, the note said.
Despite high valuations, liquidity from domestic institutions and selective foreign interest continues to support Indian equities near record highs.
Also Read: Nifty settles above 24,700 in rangebound trade, midcaps outperform
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