DII buying powers market rebound as FII selling eases on June 9

Domestic institutional investors (DIIs) remained strong buyers of Indian equities on Tuesday, pumping a net ₹6,159.48 crore into the market, while foreign institutional investors (FIIs) continued to trim holdings with net sales of ₹4,566.03 crore, according to provisional exchange data.

Exchange data showed DIIs purchased shares worth ₹17,664.98 crore and sold equities worth ₹11,505.50 crore during the session. FIIs, meanwhile, bought shares worth ₹14,735.47 crore but sold ₹19,301.50 crore worth of

equities, resulting in a net outflow.

The latest figures extended the divergence between domestic and foreign investors. On June 8, DIIs had emerged as net buyers worth ₹5,165.24 crore, while FIIs sold shares worth ₹5,555.67 crore. Tuesday’s data showed domestic buying gathering further momentum even as foreign selling moderated.

The robust domestic inflows helped markets rebound from a two-session losing streak. The Sensex rose 395 points to close at 73,919, while the Nifty gained 119 points to settle at 23,242, ending near the day’s high.

Investor sentiment was aided by the Reserve Bank of India’s latest measures aimed at attracting foreign currency inflows and improving liquidity conditions. Banking stocks led the recovery, with the Nifty Bank index surging 1,131 points, or more than 2%, to close at 55,195.

All constituents of the banking index ended higher, with heavyweights ICICI Bank, State Bank of India and Axis Bank among the biggest contributors to the rally. The broader market also outperformed, with market breadth remaining firmly in favour of advances.

The recovery in equities coincided with gains in the currency market. The rupee appreciated 25 paise to close at ₹95.36 against the US dollar, supported by softer crude oil prices and a weaker US dollar index after a pause in hostilities between Israel and Iran.

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Despite persistent foreign selling, the continued appetite of domestic investors has emerged as a key support for Indian equities, helping absorb external shocks and stabilise market sentiment amid a volatile global backdrop.