Indian markets are demonstrating remarkable self-reliance as DIIs ramp up purchases to offset FII outflows. Experts point to this internal strength as the primary reason behind the market’s ability to hold ground despite external pressures.
The week to February 20 saw FIIs net sell ₹7,000 crore in cash markets, peaking at ₹7,395 crore on February 13. Indices battled volatility, closing lower on February 19 with Nifty at 25,454 after a 1.41% drop, dragged by IT, financial, and auto slumps amid global jitters.
DIIs responded with over ₹8,000 crore in net buys, particularly aggressive on February 13 and 16, Ventura Research Head Vineet Bolingkar observed. This propped up sentiment, leading to a rebound toward 25,600 by February 20 on targeted investments.
On the trade front, relief came as the US Supreme Court invalidated broad IEEPA-based reciprocal tariffs, resetting the US-India interim agreement to a 15% cap. Exporters in textiles, pharma, gems, and machinery navigate short-term fog, but the softer stance versus prior threats offers negotiation wiggle room. Potential Trump administration workarounds through other statutes keep policy volatility alive.
Sensex emerged positively from 82,000-82,500, with supports at 81,800-82,000 and resistances at 83,500-84,000. Nifty eyes 25,300 as base and 25,700 as ceiling. With volatility likely persisting, a strategy of booking profits on upticks is prudent until bullish momentum solidifies, per experts. Stay tuned to global signals and earnings season.