Domestic Investors Keep Markets Buzzing as FIIs Return to Buying

Indian markets had another upbeat session on Wednesday, with both foreign and local investors showing confidence in the equity space. While foreign institutional investors (FIIs) cautiously turned net buyers, domestic funds once again came out in full force, giving the market solid footing through the day.

As per provisional stock exchange data, FIIs picked up Indian shares worth just under ₹1,000 crore. The buying was modest but important, given that foreign flows have mostly been negative through the year. Domestic institutional investors (DIIs), on the other hand, poured in over ₹4,000 crore — continuing a trend that’s been supporting markets during periods of global uncertainty.

Market insiders say DIIs purchased shares worth around ₹19,800 crore and booked profits on about ₹15,700 crore worth of holdings. FIIs were more selective — buying roughly ₹14,700 crore worth of stocks and selling a little over ₹13,700 crore.

So far in 2025, the broader pattern remains clear: FIIs have been net sellers, pulling out more than ₹2.3 lakh crore, while DIIs have provided a strong counterbalance with inflows exceeding ₹6 lakh crore.

The day’s trading action was largely positive. The Nifty 50 index jumped over 250 points, helped by strong gains in realty, FMCG, and auto shares. Consumer-facing stocks got a lift from festive demand, while IT names lagged a bit on mixed global cues.

Analysts say the fresh inflows and upbeat sentiment show that investors are betting on India’s earnings growth story, even as global markets remain choppy. The steady hand of domestic investors — mutual funds, insurance companies, and pension managers — has been key in keeping volatility in check.

For now, traders expect momentum to stay positive, with focus shifting toward corporate results, U.S. data, and crude oil trends. If earnings hold steady and global risk appetite remains stable, Indian equities could continue to attract both foreign and domestic money through the festive season.