Market Update: Nifty holds firm amid FII outflows, new IPO opens | 04 Jun 2026
Key Highlights
Indian equities show resilience despite continued foreign institutional selling, while a new IPO enters the market today. Global cues remain mixed, influenced by geopolitical developments.
Foreign institutional investors continued their selling streak, with significant outflows recorded on May 29, even as the , as of May 29, 2026, managed a marginal gain, supported by domestic buying.
Market Snapshot
| Index | Last |
|---|---|
| Nifty 50 | 23,933.85 (+0.11%) |
Institutional Flows
(FIIs) have been net sellers in recent sessions, with significant outflows recorded on May 29. Conversely, (DIIs) have consistently been net buyers, providing a counterbalance to the FII selling.
| Date | FII Net (₹ Cr) | DII Net (₹ Cr) |
|---|---|---|
| 2026-05-29 | -21,105.86 | 16,764.14 |
| 2026-05-27 | -1,042.70 | 3,821.00 |
| 2026-05-26 | -2,407.87 | 1,361.43 |
| 2026-05-25 | 821.75 | 3,856.88 |
| 2026-05-22 | -4,440.47 | 6,003.53 |
A closer look at SEBI FII data shows a mixed picture. On May 29, FIIs were net buyers in equities but net sellers in debt. This contrasts with May 27, where they were net sellers in both equity and debt.
| Date | Equity Net Investment (₹ Cr) | Debt Net Investment (₹ Cr) |
|---|---|---|
| 2026-05-29 | 1,505.22 | -968.86 |
| 2026-05-27 | -1,029.89 | -278.15 |
| 2026-05-26 | 2,194.68 | 357.82 |
Global Cues
US markets ended higher on Friday, amid optimism over a potential US-Iran deal, which is expected to facilitate the reopening of the Strait of Hormuz. Asian markets also settled mostly higher on Friday, with Brent crude prices easing as geopolitical tensions showed signs of abating.
Economy & Policy
- The Reserve Bank of India (RBI) has cautioned that the Indian economy may face headwinds from elevated energy prices and supply chain disruptions.
- The India Meteorological Department (IMD) forecasts the Southwest monsoon seasonal rainfall over India to be 90% of the long-period average (LPA).
- A World Economic Forum (WEF) survey highlighted India’s growth prospects, noting that the country continues to stand out despite a darkening global economic outlook.
- India and South Korea have agreed to address their widening trade deficit, aiming to double bilateral trade to $54 billion by 2030.
- Commerce and Industry Minister Piyush Goyal expressed optimism that India-Canada Free Trade Agreement (FTA) talks could conclude by year-end.
- Moody’s Ratings indicated that persistently high energy prices could impact the near-term credit conditions of Indian corporates.
- April saw a sharp acceleration in Wholesale Price Index (WPI) inflation to 8.30%, fueled by a jump in fuel prices.
- Consumer Price Index (CPI) based retail inflation rose to 3.48% in April, primarily due to an uptick in food prices.
Watch
Vahh Chemicals Ltd. is currently open for subscription, with the issue closing on June 8, 2026. The price band is set at ₹60.
- Upcoming: Hexagon Nutrition Ltd. (June 5-9, price band ₹42-45) and Genxai Analytics Ltd. (June 5-9, price band ₹110-116) are set to open next.
- Recently Listed: MR Maniveni Foods Ltd. listed on June 1, 2026.
& Bonds
The Indian rupee strengthened against the US dollar on Friday, ending at 95.00, a gain of 58 paise from its previous close of 95.58 on Wednesday. Bond yields also saw a decline on Friday, with the new 10-year Government Stock yielding 6.98%, down 1 basis point from its previous close of 6.99% on Wednesday.
Corporate News
- Homre has commenced operations at its Biomass Briquettes and Pellets manufacturing facility in Rajasthan.
- Zodiac Energy has commissioned a 10.8 MWp solar power plant in Gujarat for Amanta Healthcare.
- India Pesticides has received approval from TEQ for its Fungicide products in the EU.
Despite persistent FII selling, domestic buying and positive global geopolitical developments are providing a floor for Indian equities.
The resilience of the Nifty 50, coupled with new IPO activity, suggests underlying market confidence even as inflation and monsoon forecasts present future considerations for your portfolio.