Indian stock market swings as FIIs exit and DIIs step in amid global tensions
Indian stock markets faced a turbulent week as foreign investors pulled out funds while domestic buyers stepped in. The Sensex briefly dipped below 82,000 before recovering, while the Nifty fluctuated between losses and mild gains. Global uncertainties, including US policy shifts, added to the volatility.
The week began with heavy selling by foreign institutional investors (FIIs), offloading shares worth nearly ₹7,000 crore in the cash market. This pressure dragged the Nifty down by 1.41 per cent on February 19, closing at 25,454, as global tensions and sectoral weakness weighed on sentiment. However, domestic institutional investors (DIIs) countered the outflow by pumping in over ₹8,000 crore, preventing a sharper decline.
A slight rebound followed on February 20, with the Nifty inching closer to 25,600 due to selective buying in certain stocks. The Sensex also recovered from the 82,000-82,500 range, finding support between 81,800 and 82,000 to end the session in positive territory. Analysts noted that while markets showed resilience, volatility persisted, with Nifty facing resistance near 25,700 and support around 25,300.
Global factors further influenced market mood, particularly after the US Supreme Court struck down broad reciprocal tariffs under IEEPA, capping India's tariff exposure at 15 per cent. Comments from US President Donald Trump also added to the uncertainty. Meanwhile, the Indian rupee's 17.18 per cent appreciation against the US dollar since February 2024 signalled underlying economic strength, though its direct impact on equities remained mixed.
Market experts advise caution, recommending a 'sell-on-rise' approach until a clearer upward trend emerges. Investors are urged to monitor global developments and upcoming earnings reports closely. With volatility expected to continue, the Nifty's near-term movements may stay range-bound between 25,300 and 25,700.
