Just when you thought June would be a drag, FII buying stormed back by Rs 8,710 crore amid a broader bull run in Indian stock market. Meanwhile, DII investment has stayed resilient, creating a perfect mix for robust equity inflows. But what's really driving this surge in market sentiment? Let’s break it down.
FII Buying: A Comeback Kid After a Rough Start to June
FIIs kicked off June with a Rs 4,192 crore sell-off, spooked by global uncertainties.
But this past week, they flipped the script—pumping in Rs 8,710 crore, narrowing net selling for June so far.
That FII rebound was a key catalyst behind Sensex-Nifty rebounding ~1.3%.
Sunil Subramaniam of Sundaram MF puts it best: “FII nervousness [is] temporary... dips offering buying opportunities.” Bottom line: FIIs see value in Indian markets again.
DIIs Stay Strong: The Ever-Dependable Market Cushion
Domestic institutional investors (mutual funds, insurance, pension funds) pumped in over Rs 1.25 lakh crore from May to mid-June—peaking at ~?44,000 crore in a single month.
In early June, while FIIs sold Rs 3,565 crore, DIIs bought Rs 25,510 crore—neutralizing FII jitters.
As one Reddit user noted:
“Massive SIP flows (~Rs 20,000 Cr/month)… consistent DII buying… the market has a shock absorber.”
TL;DR: DIIs are the shock-absorber—so stock market volatility from foreign flows hits harder, but the market stands strong.
How Stock Market Sentiment Is Shifting With Flows
FIIs drive short-term momentum, often triggering sharp rallies or dips.
DIIs, on the other hand, bring stability, with monthly SIPs and long-term buying smoothing out shock waves.
The result? A bull run less prone to wild swings—more like a steady cruise than a rollercoaster.
Why Both FIIs and DIIs Are Flocking Back Now
Global liquidity boost – Fed rate-cut expectations, weak USD, and improved risk appetite.
RBI action – Repo rate cuts, eased provisioning on project loans, and priority sector lending tweaks are boosting financial stocks.
Macro stability & earnings recovery – RBI cites strong domestic growth; analysts expect better earnings in the next few months .
Opportunity from dips – FIIs love the dip-buying narrative while DIIs pile in consistently—creating a growth-support framework.
Sector Spotlight: Financials, Energy & IT Leading the Charge
Latest FII buying was concentrated in banking, energy stocks, and IT stocks.
DIIs are diversifying—backup flows into mid-caps, infra, and capital goods—driving a broader foundation for the bull market.
How Indira Securities Mobile App Empowers Investors Amid This Bull Run
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Key Takeaways for Investors Riding the Bull Run
Track FII buying—especially in cyclical sectors—for short-term momentum boosts.
Trust DIIs—monthly SIP flows and institutional backing stabilize the market.
Focus on macro and policy moves—Fed signals, RBI action, and earnings outlook matter.
Diversify across sectors—financials, energy, IT are hot, but mid-caps and cyclicals may surprise.
Final Word: A Bull Run Built on Two Pillars
India’s current bull run isn’t a solo. It’s a duet—FIIs pumping in short-term liquidity, DIIs laying the long-term foundation. The result? A market that surges, dips, but stays structurally sound. If you're watching market sentiment and equity inflows, India's show is just getting started.
Disclaimer: This blog is purely for educational purposes and should not be considered investment advice. Please do your own research or consult a registered financial advisor before making any investment decisions.