FIIs persistent as net buyers for 15th session; zero effect of Operation Sindoor on May 7

FIIs persistent as net buyers for 15th session; Zero effect of Operation Sindoor on May 7

Foreign investors continued their buying momentum in May, pouring Rs 2,586 crore into Indian equities on Wednesday, marking their fifteenth straight day of inflows. Domestic institutional investors (DIIs) also turned strong buyers, infusing Rs 2,378 crore into the market, as per provisional data.

During the trading session of May 7, FIIs/FPI bought shares worth Rs 16,371.71 crore and sold shares worth Rs 13,785.85 crore, resulting in a net inflow of Rs 2,585.86 crore. DIIs bought shares worth Rs 13,168.99 crore and sold shares worth Rs 10,790.50 crore, leading to a net inflow of Rs 2,378.49 crore.

For the year so far, FIIs have been net sellers of shares worth Rs 1.20 lakh crore, while DIIs have net bought Rs 2.18 lakh crore worth of shares.

Market Performance

Benchmark Indices traded flat on May 7, in the wake of the news about Operation Sindoor. The mid and small-cap segments exhibited a strong rebound following yesterday's underperformance. Meanwhile, the Indian Rupee continued its downward journey for the second consecutive day. It fell by 40 paise against the US dollar, to close at 84.83

Among the sectoral indices, Nifty Auto, Consumer Durables, and Realty were major gainers, while Nifty FMCG, Healthcare, and Pharma ended in the red. Companies like Bharat Electronics, Hindustan Aeronautics, and Paras Defence have seen strong buying interest, as investors anticipate increased defence spending. Auto companies staged a strong rally after the conclusion of the Free Trade Agreement (FTA) with the United Kingdom (UK) and a Double Contribution Convention.

Tejas Shigrekar,  Chief Technical Research Analyst Commodities and Currencies at Angel One, said, "On Tuesday, the precious metals saw a 2–3% increase, driven by post-holiday purchases from China and concerns over potential U.S. tariffs on pharmaceutical imports. Global sentiment was further buoyed by the People’s Bank of China’s announcement of rate cuts aimed at supporting economic growth, contributing to the risk-on tone in the markets. Meanwhile, investors turned their focus to the upcoming Federal Reserve policy decision."

Traders may be tempted to sell gold at support levels, anticipating short-term bearish reversals. Simultaneously, volatility driven by ongoing U.S.-China trade tensions and fears that new tariffs from President Trump could raise prices have kept some investors on the sidelines, he added.