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Below the Weekly FII and DII Commentary for 07th November 2026 by Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking

FII AND DII WEEKLY ACTIVITY: 31-10-26

Benchmark indices witnessed one of their strongest weekly rallies ever, gaining more than 8.5% on a weekly basis amid renewed foreign fund inflows, strong domestic earnings, and easing geopolitical tensions along with lower bond yields leading to a sharp decline in crude oil prices. A decline in AI and semiconductor stocks around the world also led to positive sentiment towards Indian equities. The Nifty gained 1,977 points while the Sensex gained 6,568 points during last week. The Nifty witnessed strong gains in all five sessions and closed at the high point of the week at 25,030.35 levels, up 8.6%. Bank Nifty also witnessed strong gains, closing 8% higher during the week, while broader markets relatively underperformed, with the Nifty Midcap 100 and Nifty Smallcap 100 closing higher by 5.8% and 2.8%, respectively.

On the flows front, the week marked a complete reversal of roles. FIIs were aggressive net buyers of Rs. 459.60bn, purchasing in all five sessions and extending their buying streak to a second week after a ten-week selling run, with a single week of inflows more than recouping the Rs. 451.62bn they had sold across the whole of October. DIIs, in contrast, turned net sellers of Rs. 241.97bn, selling in all five sessions and snapping an eleven-week buying streak as they booked profits into the sharp move. Net institutional buying of Rs. 217.64bn drove the rally, with activity most intense on Thursday and Friday, when FIIs bought Rs. 287.24bn against DII selling of Rs. 164.13bn.

In the coming weeks, the sustainability of these foreign inflows will be the key variable, with heavy domestic profit-booking leaving the rally reliant on FII support. Market participants will closely monitor Brent crude prices and developments surrounding US-Iran tensions. The Q2FY27 earnings season will continue to be a major focus, with corporate results and management commentary providing insights into earnings momentum and the broader business outlook.

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