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Indian equities likely to stay range-bound in August despite foreign inflows
Sensex ended the week down 0.4% to 77,264.5 and Nifty 50 fell 0.3% to 24,175.7 as domestic profit booking and heavy primary-market supply offset more than ₹30,000 crore of foreign buying.
Indian equities are expected to finish August in a narrow trading band even after foreign portfolio investors bought more than ₹30,000 crore of shares during the month, LiveMint Markets reported. The publication linked the lack of follow-through to domestic profit taking and a heavy pipeline of primary issuance that absorbed liquidity. Across the week, the Sensex fell 0.36% to close at 77,264.51 and the Nifty 50 declined 0.31% to settle at 24,175.65. On Friday, technology stocks helped the indices snap a two-session losing streak, but momentum remained limited by profit booking and ongoing supply in the secondary market. Market analyst Mayank Jain of Share.Market by PhonePe said the August stalemate is largely driven by large-scale domestic profit booking offsetting foreign inflows. He also pointed to elevated US Treasury yields, a strong US dollar, and volatile crude oil prices as factors keeping institutional buyers cautious. Separate commentary from Piyush Mehta, smallcase manager and chief investment officer at Caprize Investment, said the market is facing substantial equity supply from promoter stake sales, private equity exits, IPOs, and QIPs. He added that more than ₹80,000 crore was raised through such fundraisings in August, with foreign inflows absorbing supply rather than pushing secondary prices higher, while metal stocks rose nearly 3% and IT stocks were among the week’s top performers after a global technology rally following Nvidia’s earnings and guidance.
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