The equity markets witnessed strong buying interest from both foreign and domestic institutional investors on Friday, as the Reserve Bank of India’s surprise rate cuts bolstered market sentiment and pushed benchmark indices to fresh milestones.
Provisional data showed that Foreign Institutional Investors (FIIs) were net buyers to the tune of ₹1,009 crore, purchasing shares worth ₹15,208 crore while selling shares worth ₹14,198 crore. Domestic Institutional Investors (DIIs) remained significantly more active, making net purchases worth ₹9,342 crore after buying shares worth ₹22,522.51 crore and selling ₹13,180 crore.
The robust flows came despite a rangebound trading session that saw the Nifty 50 consolidate near record highs. The index eventually closed at 25,003, while the Nifty Bank ended at 56,578, with both indices reacting positively to the RBI’s dovish policy surprise.
The central bank slashed the repo rate by 50 basis points and cut the Cash Reserve Ratio (CRR) by 100 basis points, exceeding market expectations and injecting optimism into rate-sensitive sectors.
"The Nifty opened flat but witnessed strong buying interest post the RBI policy announcement and settled on a bullish note," said Hrishikesh Yedve, AVP – Technical and Derivative Research at Asit C. Mehta Investment Intermediaries. "The index formed a big bullish candle on both daily and weekly charts, signalling strength. As long as it holds above 24,500, a buy-on-dips strategy is advisable."
Yedve added that a sustained move above 25,120 could open up further upside towards the 25,500–25,800 zone.
Volatility eased, with India VIX falling 3% to 14.63, indicating rising comfort among traders heading into the new week.
Banking stocks led the gains, helping the Bank Nifty break out above the 56,160 resistance level. The index formed a bullish rounding bottom pattern, with analysts eyeing near-term targets of 57,500 and medium-term potential towards 58,500.
While the broader rally extended across banking, real estate, and auto stocks, defensive plays like FMCG and pharmaceuticals remained subdued.
Despite Thursday’s inflows, FIIs remain net sellers in 2025, with outflows totaling ₹1.24 lakh crore so far this year. In contrast, DIIs have acted as a stabilizing force, with cumulative net purchases nearing ₹3 lakh crore year-to-date.
With the RBI’s pivot towards growth and liquidity support, traders are increasingly positioning for further upside, contingent on key resistance levels being breached in the sessions ahead.
Provisional data showed that Foreign Institutional Investors (FIIs) were net buyers to the tune of ₹1,009 crore, purchasing shares worth ₹15,208 crore while selling shares worth ₹14,198 crore. Domestic Institutional Investors (DIIs) remained significantly more active, making net purchases worth ₹9,342 crore after buying shares worth ₹22,522.51 crore and selling ₹13,180 crore.
The robust flows came despite a rangebound trading session that saw the Nifty 50 consolidate near record highs. The index eventually closed at 25,003, while the Nifty Bank ended at 56,578, with both indices reacting positively to the RBI’s dovish policy surprise.
The central bank slashed the repo rate by 50 basis points and cut the Cash Reserve Ratio (CRR) by 100 basis points, exceeding market expectations and injecting optimism into rate-sensitive sectors.
"The Nifty opened flat but witnessed strong buying interest post the RBI policy announcement and settled on a bullish note," said Hrishikesh Yedve, AVP – Technical and Derivative Research at Asit C. Mehta Investment Intermediaries. "The index formed a big bullish candle on both daily and weekly charts, signalling strength. As long as it holds above 24,500, a buy-on-dips strategy is advisable."
Yedve added that a sustained move above 25,120 could open up further upside towards the 25,500–25,800 zone.
Volatility eased, with India VIX falling 3% to 14.63, indicating rising comfort among traders heading into the new week.
Banking stocks led the gains, helping the Bank Nifty break out above the 56,160 resistance level. The index formed a bullish rounding bottom pattern, with analysts eyeing near-term targets of 57,500 and medium-term potential towards 58,500.
While the broader rally extended across banking, real estate, and auto stocks, defensive plays like FMCG and pharmaceuticals remained subdued.
Despite Thursday’s inflows, FIIs remain net sellers in 2025, with outflows totaling ₹1.24 lakh crore so far this year. In contrast, DIIs have acted as a stabilizing force, with cumulative net purchases nearing ₹3 lakh crore year-to-date.
With the RBI’s pivot towards growth and liquidity support, traders are increasingly positioning for further upside, contingent on key resistance levels being breached in the sessions ahead.
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