Updated 8 August 2025 at 11:16 IST
After Biggest Buying Since April, Are Domestic Funds Set to Drive the Next Market Rally?
Indian domestic institutions poured ₹108.6 billion into equities on Thursday, their largest single-day purchase since April, cushioning markets from the hit of President Donald Trump’s tariff escalation. Strong local inflows offset foreign selling, lifting the Nifty 50 and supporting key block deals in Kotak Mahindra Bank and Eternal.
India’s domestic institutional investors (DIIs) stepped in as powerful buyers on Thursday, making their largest single-day equity purchase in four months to support markets rattled by US tariff shocks.
Data from the exchanges showed local mutual funds, insurers, and pension managers bought a net ₹108.6 billion ($1.2 billion) worth of shares, offsetting heavy selling by foreign portfolio investors (FPIs), according to the report by Bloomberg.
The move helped the NSE Nifty 50 Index close slightly higher despite pressure from global trade tensions triggered by President Donald Trump’s latest tariff escalation.
Block Deals Drive Local Interest
As per a report by Bloomberg, large sell-downs in Kotak Mahindra Bank Ltd. and Eternal Ltd. attracted domestic funds as anchor buyers in two major block deals.
Domestic Flows Outpace Foreign Selling in 2025
DIIs have been a consistent market stabiliser during downturns, investing nearly $50 billion so far in 2025, more than four times the $11 billion in net sales by foreign investors over the same period, as per Bloomberg.
Market Recap
On thursday, Indian equity benchmarks ended marginally higher on August 7, setting the stage for a busy trading day on August 8. The Nifty closed just below the 24,600 mark at 24,596.15, up 21.95 points, while the Sensex gained 79 points to finish at 80,623.26.
Read More - Opening Bell: BSE Sensex, Nifty50 Open Lower Amid Mixed Global Cues
Trump tariff Shock
US President Donald Trump has announced an additional 25% tariff on Indian imports in response to New Delhi’s continued purchase of Russian oil, escalating tensions in global trade. The new duties, set to take effect in three weeks, will be added to a separate 25% levy from Thursday, effectively doubling tariffs to 50% for many products.
While certain goods such as steel, aluminium, pharmaceuticals, and semiconductors will enjoy exemptions or delayed inclusion, the move targets a wide swath of India’s export basket.
India swiftly condemned the decision, calling it “unfair, unjustified and unreasonable.” The Foreign Ministry reiterated that India turned to Russian oil only after traditional supplies were diverted to Europe due to the Ukraine war — a step it says Washington had “actively encouraged” to maintain global energy market stability.
(With Inputs From Bloomberg)
Published By : Gunjan Rajput
Published On: 8 August 2025 at 11:16 IST