Is the Market Setting Up for a Shock? FIIs’ Retreat and DIIs’ Bold Move Could Signal the Unexpected!

A dramatic shift unfolded on January 29 in the Indian stock market—but what does it mean for investors moving forward? While Domestic Institutional Investors (DIIs) were on a buying spree, Foreign Institutional Investors (FIIs) seemed to be heading for the exits. FIIs net sold shares worth Rs 2,586 crore, creating a stir, while DIIs net bought Rs 1,792 crore. Is this a sign of changing tides in the market?

During the session, DIIs bought a massive Rs 12,871 crore worth of shares but sold Rs 11,078 crore, reflecting a balance between buying and selling. Meanwhile, FIIs purchased Rs 7,644 crore in shares but offloaded a staggering Rs 10,230 crore.

For the year so far, FIIs have now net sold Rs 81,594 crore while DIIs have net bought Rs 82,191 crore. This marks a significant shift in sentiment—why the sudden change? Could it be a strategic move ahead of upcoming events? Are foreign investors stepping back?

At the close of the day, Sensex reached 76,532.96 points, a healthy 0.83% gain, while Nifty ended at 23,163.1 points, up by 0.9%. The sectors that led the charge? Media, Capital Goods, IT, Metal, and Realty, each rising 2-3%. Meanwhile, Auto, Bank, Pharma, and Oil & Gas sectors saw modest gains ranging from 0.5-1.5%.

According to Osho Krishnan, Senior Analyst at Angel One, the Nifty showed strong momentum, pushing past the 23,000 mark. Despite this, a technical shift has taken place: Krishnan notes that the ‘Falling Wedge’ pattern acted as a supportive cushion, moving the market from a bearish to a more cautious stance, especially as we approach the Union Budget session.

The INDIA VIX has shown a slight uptick to 18, which is typical before major events. Could this increase in volatility signal bigger market moves ahead? Will FIIs reverse course, or will DIIs continue to lead the charge?

Stay tuned as we brace for more action—the story is just beginning.