Foreign Institutional Investors Boost Indian Equities Amid Mixed Domestic Flows

Foreign institutional investors (FIIs) continued their buying spree in Indian equities, registering net purchases of Rs 6,567.15 crore on November 9. This surge in foreign inflows comes amid improving corporate earnings and a decline in crude oil prices, which have positively influenced market sentiment. Ajit Mishra, SVP–Research at Religare Broking, noted that overseas investors have infused over $4.1 billion into Indian equities so far this month, bolstering investor confidence.

In contrast, domestic institutional investors (DIIs) sold equities worth Rs 18,213.24 crore while purchasing shares worth Rs 11,719.12 crore, resulting in net selling of Rs 6,494.12 crore. Despite this, DIIs have been net buyers for much of 2026.

The market experienced a volatile session, with the Nifty gaining 58.25 points, or 0.23%, to close at 25,044.65, while the Sensex settled at 81,106.65. Mishra described the session as a necessary breather following a sharp seven-session rally, with the benchmark indices managing to hold onto most of their recent gains.

Three key factors are driving the recent FII buying: an improvement in corporate earnings, a decline in crude prices, and attractive valuations in large-cap stocks. Vinod Nair, Head of Research at Geojit Investments Limited, emphasized that better-than-expected corporate results have strengthened expectations for an upgrade in the FY27 earnings outlook, supporting market sentiment. Additionally, the easing of geopolitical tensions and a correction in crude prices have provided further comfort to investors.

Looking ahead, analysts suggest that upcoming inflation data from India and the U.S. will be critical for interest rate outlooks, with crude prices and global risk sentiment also under scrutiny. Mishra highlighted the Nifty's support zone between 24,600 and 24,800, suggesting that maintaining these levels could preserve a positive market bias.