FIIs return to buying with ₹1,143 crore inflow after nearly ₹8,000-crore selloff

Foreign Institutional Investors (FIIs) returned to buying Indian equities on Tuesday, September 1, recording net purchases of ₹1,143.38 crore, according to provisional data.

FIIs bought shares worth ₹17,807.53 crore and sold ₹16,664.15 crore during the session.

The turnaround came a day after foreign investors dumped a net ₹7,985.88 crore of Indian equities. The two sessions together, however, still leave FIIs as net sellers by about ₹6,843 crore.

DIIs remain buyers

Domestic Institutional Investors (DIIs) also supported the market, buying a net ₹1,846.94 crore on Tuesday.

They purchased equities worth ₹15,635.49 crore and sold ₹13,788.55 crore.

DII buying, however, slowed from Monday, when domestic institutions had pumped a net ₹4,588.88 crore into the market.

Together, FIIs and DIIs were net buyers of ₹2,990.32 crore on Tuesday.

Markets end higher, rupee hits two-month high

Indian equity benchmarks ended higher after the Closing Auction Session (CAS), with the Nifty holding above 24,000 following a volatile session. The benchmark indices finished above their respective 3:15 pm levels after the auction.

The rupee strengthened during the session, rising 27 paise against the US dollar intraday to touch a two-month high.

Market breadth, however, remained weak, with two stocks declining for every one that advanced.

Among Nifty stocks, ITC was the top gainer, while Maruti Suzuki led the losers after its August sales came in below estimates.

Bajaj Auto gained nearly 2% following strong August sales, while Reliance Industries extended its advance and closed nearly 2% higher. Adani Group stocks also gained, with Adani Ports rising more than 3%.

Crude oil, fuel prices weigh on some stocks

Brent crude climbed above $92 a barrel, putting pressure on stocks sensitive to higher oil prices. Asian Paints and BPCL fell as much as 4%.

IndiGo declined nearly 4% after an increase in jet-fuel prices, while sugar stocks fell as much as 6% after the government reduced the stock-holding limit.

Elsewhere, Havells dropped 6% following UltraTech's entry into the wires segment, while KEI Industries fell to a 17-month low.

Godrej Agrovet jumped more than 6% following a positive brokerage note, while Graphite India gained over 4% after GrafTech cut graphite-electrode capacity.

EPL fell more than 8% after promoter Epsilon Bidco sold its entire stake, while Ujjivan Small Finance Bank declined over 5% after its managing director and chief executive sought early retirement.