FIIs push 700-point Nifty rally in July, turn net sellers in last 2 sessions; will the momentum sustain in August?

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₹5,003.35 crore in Indian equities, snapping its consistent buying streak that helped sustained a record rally in domestic benchmark Nifty this month. Nifty has rallied around five per cent in July mainly on foreign capital inflow and the momentum led by first quarter results of fiscal 2023-24 (Q1FY24). FIIs have pulled off a 700-point rally in the Nifty since the 3rd of this month at the start of the earnings season for the first quarter, according to analysts.

‘’Nifty has rallied around 5 per cent in the last one month mainly on FII buying and sustaining strong inflows into domestic mutual funds. Institutional support is likely to continue,'' said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

FII inflows between April to July were close to ₹80,500 crore, while DIIs sold Rs.4,500 crore in this period. The DII selling comes on the back of mutual fund SIP inflows of Rs.43,211 crore in the April-June quarter, at an average inflow of ₹14,400 crore a month. ‘’Many mutual fund schemes have stopped lumpsum investments and are currently advocating investments through the SIP route.

More clarity could emerge on the individual stock valuations and fresh investment opportunities post the current results season,'' said Gopal Kavalireddi, Vice President - Research at FYERS. Also Read: Nifty rallies 15% in FY24 so far, on track to hit 20,000-mark led by Q1 earnings, FII momentum However, in the last two sessions, FIIs turned net sellers and domestic institutional investors (DIIs) were the net buyers as equity benchmarks recorded losses in both sessions on weak global cues. On Thursday, FIIs sold a net total of ₹3,979.44 crore in the purchase of shares, while domestic institutional investors (DIIs)