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Indian Market Sees Domestic Buying Counter FII Inflows on Friday, as Institutions Position Ahead of Week's Events

Published: 2025-09-14 17:03 IST | Category: Markets | Author: Abhi

Market Snapshot

The Indian benchmark indices, including the Nifty, closed higher on Friday, September 12, 2025, marking a positive end to the trading week. The Nifty ended the day at 25,114.00, up 108.50 points or 0.43%. This performance was influenced by a confluence of global and domestic factors, with institutional investor activity playing a crucial role.

Institutional Flows: Cash Market

The provisional data for Friday, September 12, 2025, indicates a continuation of strong domestic support for the Indian equities, partially offsetting foreign activity.

  • Foreign Institutional Investors (FIIs): FIIs recorded marginal net buying in the cash segment, with an inflow of ₹129.58 crore. This marks a shift from the net selling observed on the preceding two trading days.
  • Domestic Institutional Investors (DIIs): DIIs were significant net buyers, injecting ₹1,556.02 crore into the cash market on September 12, 2025. This substantial domestic buying provided a strong foundation for market stability and upside.

Looking at the recent trend:

  • On Thursday, September 11, 2025, FIIs were net sellers with an outflow of ₹3,472.37 crore, while DIIs were net buyers with an inflow of ₹4,045.54 crore.
  • On Wednesday, September 10, 2025, FIIs sold shares worth ₹115.69 crore, and DIIs bought shares worth ₹5,004.29 crore.

Derivatives Market Activity

Institutional investors exhibited varied strategies in the derivatives segment on September 12, 2025:

  • FIIs in F&O:

    • FIIs showed a bearish stance on indexes, selling more index contracts than they bought.
    • Conversely, they appeared bullish on individual stocks, with buying exceeding selling in stock contracts.
    • In index options, FIIs sold more call options than they purchased, suggesting a capped upside expectation. They also bought more put options than they sold, indicating a hedging strategy or a bearish tilt.
    • Specific figures for FII derivatives net activity include Index Futures net buying of ₹1,977.80 crore, Index Options net buying of ₹8,573.60 crore, Stock Futures net buying of ₹1,059.30 crore, and Stock Options net selling of ₹118.10 crore.
  • DIIs in F&O:

    • DIIs demonstrated a bullish outlook on indexes, with more buying than selling in index contracts.
    • However, they were bearish on individual stocks, selling significantly more stock contracts than they bought.
    • In index options, DIIs bought more call options than they shorted, and also bought more put options than they shorted, indicating a mixed but potentially cautious approach.

Key Drivers and Outlook

The latest institutional flow data underscores the continued importance of domestic investors in stabilizing and driving the Indian market. While FIIs have shown some volatility with intermittent outflows in early September, DIIs have consistently provided strong buying support.

The mixed signals from FIIs in the derivatives market, particularly their bearish stance on index futures and net selling of call options, suggest a degree of caution or hedging against potential market downturns. Meanwhile, DIIs' bullishness in index futures could be a reflection of their long-term conviction in the Indian growth story.

Investors will be closely watching global cues, including upcoming central bank decisions and geopolitical developments, as well as domestic corporate earnings and macroeconomic data, which are expected to influence market direction in the coming week. The interplay between foreign and domestic institutional flows will remain a critical determinant of market sentiment and trajectory.

TAGS: FII, DII, Stock Market, Institutional Investors, Nifty, Sensex

Tags: FII DII Stock Market Institutional Investors Nifty Sensex

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