FIIs withdraw ₹1,602 crore from Indian stock market; Market stabilized due to strong buying by domestic investors

Amid rising crude oil prices and global geopolitical tensions, the Indian stock market has been witnessing a mixed trend for the last few days. During this period, foreign institutional investors i.e. FIIs have made a net withdrawal of Rs 1,602 crore from the Indian stock market in just five days. However, amidst this selling trend of foreign investors, domestic institutional investors i.e. DIIs once again took the lead and saved the market from a major fall and continued buying.

Market remained stable due to excellent buying by DII

According to market experts, after continuous buying for the last three weeks, foreign investors have once again returned to the selling path. If we look at the figures so far for the month of August, foreign investors have invested Rs 2,510 crore, while domestic institutional investors have made a huge investment of more than Rs 34,370 crore during this period. During this one week alone, DII has strengthened the confidence of investors by making net purchases of Rs 17,320 crore, due to which there was no major decline in the market.

Impact of crude oil prices and global tensions on the market

Crude oil prices in the international market remain above $92 per barrel, apart from this, the increasing tension between America and Iran has also increased the concern of investors. Due to this, Nifty looked weak in the beginning of the week and during the middle of the week it also touched a low of 24,026. However, after a strong recovery in the last two trading sessions, Nifty closed at 24,252, showing a slight decline of about half a percent compared to the previous week.

Investors continue to be enthusiastic about midcap and smallcap stocks.

The major indices may have been sluggish, but the performance of the broader market has been quite impressive. The Nifty Midcap 100 index closed almost flat, while the Nifty Smallcap 100 index registered a strong gain of over one per cent, touching a new all-time high. This clearly shows that the interest of retail and domestic investors still remains in the shares of strong, medium and small companies. In the coming days, the market movement will mainly depend on crude oil prices, global political developments and the attitude of foreign investors.