FIIs turn net buyers after 23 days; purchases equities worth ₹809.23 crore

After 23 consecutive sessions of net selling, Foreign Institutional Investors (FIIs) returned as net buyers in the Indian cash market on February 4, purchasing equities worth ₹809.23 crore. This marked a significant shift, as Domestic Institutional Investors (DIIs) continued their selling streak, offloading ₹430.70 crore worth of shares, according to provisional data from the NSE. This was the first instance of FII buying since January 2, when they had net purchased ₹1,507 crore.

The market responded positively, with benchmark indices Sensex and Nifty surging nearly 2%, buoyed by optimism in Asian markets following US President Donald Trump’s announcement to delay tariffs on Mexico and Canada for another month.

Sensex and Nifty Rebound

The Sensex shot up by 1,397.07 points (1.81%), closing at 78,583.81, its highest level in a month. It also reached an intraday high of 78,658.59. Similarly, the Nifty gained 378.20 points (1.62%) to end the day at 23,739.25, its highest since January 3.

Among major stocks, Larsen & Toubro stood out with a nearly 5% rally, while Adani Ports, IndusInd Bank, Tata Motors, Reliance Industries, UltraTech Cement, and Asian Paints all posted notable gains. On the downside, stocks like ITC Hotels, Zomato, Nestle, and Maruti underperformed.

FII Activity in Futures and Options

FIIs were also active in the Futures and Options segment, buying a net ₹7,473.73 crore in stock futures and ₹5,353.50 crore in index futures on the same day. This indicates strong institutional confidence in the market’s near-term prospects.

Global Market Impact

Asian markets, including those in Seoul, Tokyo, and Hong Kong, closed significantly higher, supporting the positive sentiment in Indian equities. The broader market rally was driven by the optimism surrounding global trade, following President Trump’s tariff delay announcement.

Market Outlook

The return of FIIs to the buying side, along with positive global cues, suggests that market sentiment may continue to improve in the near term. However, DIIs' continued selling and the overall volatility in global markets could pose risks for sustained gains.