Dalal Street Ends Flat as IT Surge Battles FMCG Drag; FIIs Turn Net Buyers — July 28, 2026

Market Snapshot

The domestic equity benchmarks struggled for direction on July 28, 2026, ultimately settling with minor losses as investors braced for key global central bank meetings. The BSE Sensex declined by 69.86 points, or 0.09%, to close at 76,765.92, while the NSE Nifty 50 slipped 10.60 points, or 0.04%, to finish at 23,985.35. The session was characterized by a sharp divergence in sectoral performance; the Nifty IT index rocketed over 3.3% following a sector upgrade and rotation away from global AI-heavyweights, while the Nifty FMCG index plummeted, led by a nearly 7% crash in Hindustan Unilever (HUL) following a disappointing earnings report.

Market breadth remained skewed toward the bears, with 1,539 stocks advancing against 2,543 declines. The broader markets reflected this indecision, as the Nifty Midcap 100 edged up 0.08% while the Smallcap 100 fell 0.22%.

Institutional Flows: Cash Market

Provisional data for the cash market segment indicates a shift in sentiment among foreign participants who returned to the buying side after a period of sustained selling.

• Foreign Institutional Investors (FIIs) were net buyers in the cash segment, purchasing equities worth ₹755 crore.
• Domestic Institutional Investors (DIIs) continued their supportive streak, recording a net purchase of ₹1,664 crore.
• The total net institutional inflow for the day stood at ₹2,419 crore, providing a necessary liquidity cushion against the backdrop of weak global cues.

Derivatives Market Activity

Despite the positive turn in the cash market, the derivatives segment suggests a more cautious, hedged approach by institutional players.

• FIIs maintained a significant bearish tilt in index futures, carrying a net short position of approximately 2,66,925 contracts.
• The total Open Interest (OI) value for index futures was pegged at approximately ₹52,177 crore, reflecting high stakes ahead of the monthly expiry.
• In stock futures, however, there was evidence of selective long additions, particularly in the IT and Realty sectors, indicating a preference for stock-specific bets over broad index exposure.

Key Drivers and Outlook

The primary headwind for the day was the bloodbath in Asian markets, specifically in South Korea, where the Kospi index plunged nearly 11% amid fears of an AI bubble burst. Domestically, HUL’s 3.17% year-on-year decline in net profit weighed heavily on the FMCG sector. Offsetting these pressures was a sharp decline in Brent crude prices to around $85.87 per barrel, which offered relief regarding inflation concerns.

Looking ahead, the market outlook remains tethered to the "Super Week" of central bank policies. Traders are closely monitoring the US Federal Reserve, Bank of England, and Bank of Japan for interest rate cues. Until a clear direction emerges from these global triggers, the Nifty is expected to remain range-bound, with immediate support at 23,800 and stiff resistance at the 24,050–24,100 zone.

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

Tags: FII DII Stock Market Institutional Investors Nifty Sensex