As FIIs beat a retreat from Indian shores, DIIs are stepping up with unwavering support, underscoring the growing maturity of domestic capital markets. This dynamic is proving crucial in navigating recent turbulence.
Net FII outflows hit ₹7,000 crore for the week ending February 20, with February 13 witnessing a hefty ₹7,395 crore exit. Markets fluctuated wildly, Nifty shedding 1.41% to settle near 25,454 on February 19, pressured by global concerns and sell-offs in tech, finance, and autos.
In stark contrast, DIIs net purchased beyond ₹8,000 crore, showing vigor on key dates like February 13 and 16, according to Vineet Bolingkar of Ventura. A modest uptick on February 20 brought Nifty close to 25,600 via discerning buys.
Trade tensions eased somewhat with the US Supreme Court’s dismissal of sweeping reciprocal tariffs under IEEPA, confining effects to 15% in the US-India interim framework. Sectors such as garments, drugs, precious stones, and equipment exporters grapple with near-term ambiguity, yet it’s less draconian than anticipated, paving way for talks. Trump’s signals of alternative legal maneuvers for tariffs sustain unease.
Sensex closed on a firm note after hovering in 82,000-82,500, backed by 82,000-81,800 floors and facing 83,500-84,000 barriers. Nifty’s supports at 25,300 and resistance at 25,700 guide traders. Expect ongoing swings; experts urge selling into strength absent firm uptrends, while tracking international developments and corporate results.