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Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) continued their buying streak on Friday, reigniting optimism on Dalal Street. According to Zee Business Managing Editor Anil Singhvi, strong economic data and favourable global trends have created a conducive environment for sustained market gains.

FIIs were net buyers for the 12th straight session the first time in two years infusing Rs 3,200 crore into Indian equities on Friday. DIIs also purchased shares worth Rs 3,300 crore, marking the fifth consecutive day when both FIIs and DIIs were net buyers.

“Excluding the Rs 2,713 crore PNB Housing block deal, FII-DII net buying actually doubles. This kind of coordinated buying hasn't been seen in a long time,” said Anil Singhvi.

The consistent inflow from both institutional camps is a vote of confidence in India’s economic fundamentals. “Both FIIs and DIIs have a very positive view on Indian markets, thanks to robust macroeconomic data,” Singhvi noted.

Brent crude has fallen to its lowest level since January 2021. This is a major tailwind for the Indian economy, as lower oil prices reduce the import bill and help contain inflation.

“Our target of $55 - 60 per barrel for this year has been met. This is extremely positive for the rupee and for companies in paints, aviation, and OMC sectors,” Singhvi said.

The fall in crude is expected to benefit oil marketing companies (OMCs) such as HPCL, BPCL, and IOC, along with aviation firms like Indigo, and paint companies like Asian Paints and Berger Paints. On the other hand, oil explorers like ONGC and Oil India may come under pressure due to lower realisations.

On Wall Street, the Dow Jones and S&P 500 extended their gains for the ninth straight session, a feat not seen in over two decades for the S&P. The rally is being fuelled by strong US economic data and a more conciliatory tone from former President Donald Trump on tariffs and the US Fed.

Auto major Tata Motors has resumed exports from Britain to the US after a month-long pause, another positive development that could aid investor sentiment.

With key global and domestic indicators aligning favourably, markets may continue to witness strength in the near term. “The combination of FII-DII buying, falling crude, a stable rupee, and global cues could sustain this momentum,” Singhvi added.

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