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Below the Weekly FII and DII Commentary for 31th October 2026 by Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking

FII AND DII WEEKLY ACTIVITY: 31-10-26

Benchmark indices staged a sharp recovery during the week, recouping most of the previous week’s losses. Sentiment improved after the US Federal Reserve kept interest rates unchanged, although elevated Brent crude prices above $110 continued to weigh on the macroeconomic outlook. The Nifty opened on a positive note, consolidated over the next two sessions and gained momentum towards the end of the week, touching an intraweek high of 23,118. The index eventually closed at 23,053.10, up 2.0% for the week. Bank Nifty gained 0.7% during the week, while broader markets outperformed the benchmarks, with the Nifty Midcap 100 and Nifty Smallcap 100 recouping part of the previous week’s decline, rising 2.7% and 4.0%, respectively.

On the flows front, FIIs turned net buyers of Rs. 63.05bn, snapping a ten-week selling streak and buying in three of the five sessions, which drove the sharp recovery. DIIs remained net buyers for the eleventh consecutive week, though purchases moderated to Rs. 31.10bn from Rs. 109.42bn as they booked profits into the rally. Month-to-date, FII net selling has narrowed to Rs. 451.62bn against DII net buying of Rs. 622.20bn, with the Nifty up from its September-end close of 22,620.45 and above its Oct 8 low of 22,231.80.

Going ahead, the reversal in FII flows is an encouraging signal for sentiment, though elevated crude and global event risk could temper the momentum. Market participants will closely track the outcome of the US midterm elections in the coming week. Additionally, movements in Brent crude prices, developments in the US-Iran and Russia-Ukraine conflicts, and ongoing quarterly earnings announcements will remain key factors influencing investor sentiment.

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