Nifty and Sensex End Flat Amid Expiry Volatility; FIIs Offload ₹4,205 Crore

Market Snapshot

The Indian equity markets witnessed a volatile session on Thursday, ultimately ending on a flat note as the weekly Sensex expiry triggered intraday fluctuations. The BSE Sensex edged up marginally by 1.44 points to settle at 77,186.87, while the NSE Nifty 50 slipped 5.75 points, or 0.02%, to close at 24,072.75. The market breadth remained mixed, with the IT sector providing the primary support to the benchmarks.

• Top Gainers: HCL Technologies (+1.86%), InterGlobe Aviation (+1.82%), Maruti Suzuki (+1.52%), and Bajaj Finance (+1.49%).
• Top Losers: Eternal Limited (-3.05%), SBI Life Insurance (-2.27%), and Bajaj Finserv (-0.95%).
• Sectoral Performance: Nifty IT and Nifty Auto emerged as the top performers, while Nifty Realty and Nifty PSU Bank faced significant selling pressure.

Institutional Flows: Cash Market

Provisional data for July 16, 2026, revealed a significant divergence between foreign and domestic institutional activity. Foreign Institutional Investors (FIIs) intensified their selling pressure, while Domestic Institutional Investors (DIIs) continued their supportive buying trend, albeit at a lower quantum than the foreign outflows.

• Foreign Institutional Investors (FII): Net sellers with an outflow of ₹4,205.56 crore.
• Domestic Institutional Investors (DII): Net buyers with an inflow of ₹2,986.41 crore.
• Market Impact: The substantial net outflow from FIIs was a primary reason for the indices surrendering their early morning gains, as domestic liquidity was unable to fully absorb the foreign exit.

Derivatives Market Activity

The derivatives segment was dominated by the weekly expiry of Sensex options, which led to a spike in volatility during the final hour of trade.

• India VIX: The volatility index declined by 3.49% to settle at 13.27, suggesting that despite the flat close, extreme fear is not currently prevalent in the market.
• Nifty PCR: The Put-Call Ratio (PCR) remained in a neutral zone, reflecting cautious positioning by traders ahead of the Q1 earnings heavyweights.
• Key Levels: Analysts noted that the 24,160–24,200 range has emerged as a formidable resistance for the Nifty, while 23,930 acts as the immediate psychological support.

Key Drivers and Outlook

The market sentiment is currently being pulled in opposite directions by domestic earnings optimism and global geopolitical risks.

• Global Cues: While US markets gained on softer-than-expected inflation data, Asian peers like the Kospi (-6.37%) and Nikkei (-3%) faced sharp declines, weighing on local sentiment.
• Commodity Headwinds: Brent crude oil prices remained elevated above $85 per barrel, fueled by escalating US-Iran tensions, which continues to be a concern for India's trade deficit and inflation.
• Outlook: Investors are now pivoting toward the June quarter earnings season. Positive management commentary from IT majors like Wipro has provided a floor to the market, but further upside will likely require a stabilization of FII flows and a de-escalation of West Asian tensions.

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

Tags: FII DII Stock Market Institutional Investors Nifty Sensex