FIIs Return with ₹3,624 Crore Inflow as Nifty Ends July on a High Note Above 24,350

Market Snapshot

The Indian benchmark indices ended the session on July 31, 2026, with marginal gains, mirroring positive sentiment from global peers. The NSE Nifty 50 advanced by 66.45 points, or 0.27%, to settle at 24,383.60. Similarly, the 30-share BSE Sensex gained 166.49 points, or 0.21%, closing at 78,094.64.

Sectoral performance was highly fragmented. The energy and automobile sectors led the gainers, bolstered by strong Q1 earnings from heavyweights like Mahindra & Mahindra. However, the gains were capped by significant selling pressure in the Information Technology (IT) and FMCG sectors, with the Nifty IT index emerging as a major laggard, dropping over 2% during the session.

Institutional Flows: Cash Market

Institutional participation showed a clear divergence on Friday, as foreign investors aggressively entered the cash market while domestic players opted to trim their holdings.

• Foreign Institutional Investors (FIIs) were net buyers, purchasing equities worth ₹3,623.51 crore.
• Domestic Institutional Investors (DIIs) acted as net sellers, offloading shares worth ₹1,864.03 crore.
• The net institutional inflow for the day stood at ₹1,759.48 crore.

Derivatives Market Activity

Despite the buying interest in the cash segment, the derivatives data suggested a cautious to bearish undertone among institutional players.

• The Nifty Put-Call Ratio (PCR) improved slightly to 1.26 from 1.18, indicating some support at lower levels.
• India VIX, the market's volatility gauge, rose by 1.23% to end at 12.16, reflecting increased intraday swings.
• FII positioning in the F&O segment remained net short in index futures (186,612 contracts) and net long in puts (440,725 contracts), signaling a hedge against potential near-term corrections.
• The highest Open Interest (OI) for the upcoming weekly expiry is concentrated at the 24,600 Call and 24,000 Put strikes.

Key Drivers and Outlook

The market rally was primarily fueled by strong global cues, particularly from the US markets where the Nasdaq surged over 3%, and Japan’s Nikkei 225, which rallied nearly 4%. Domestically, the Indian Rupee's strength—recording its best weekly gain since March—provided additional support to investor sentiment.

Looking ahead, analysts suggest that the Nifty needs a decisive breakout above the 24,350–24,450 resistance zone to sustain its upward momentum. While the return of FII buying is a positive trigger, the weak market breadth (where declines outnumbered advances) and the bearish tilt in derivatives data warrant a selective, stock-specific approach as the market enters August.

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

Tags: FII DII Stock Market Institutional Investors Nifty Sensex