New Delhi, Feb 22 (AHN) As foreign institutional investors (FIIs) continue to sell in the domestic markets, domestic institutional investors (DIIs) also continue to provide strong support, driven by robust cues, according to analysts.

FIIs recorded net outflows of approximately Rs 7,000 crore in the cash market for the week ending February 20, amid volatile trading sessions marked by heavy selling on February 13 (Rs 7,395 crore outflow).

“Despite this, Domestic Institutional Investors (DIIs) provided strong support with net inflows exceeding Rs 8,000 crore, highlighted by robust buying on February 13 and 16. Benchmark indices faced pressure, with Nifty closing around 25,454 on February 19 after a 1.41 per cent drop, influenced by global tensions and sector-wide declines in IT, financials, and autos,” said Vinit Bolinjkar, Head of Research, Ventura.

A partial rebound occurred on February 20, with Nifty nearing 25,600 amid selective buying.

As the US Supreme Court struck down earlier broad “reciprocal” tariffs under IEEPA, for India, this effectively resets the interim US-India trade arrangement, limiting tariff exposure to 15 per cent for now.

While this introduces short-term uncertainty for Indian exporters in sectors such as textiles, pharmaceuticals, gems, and machinery, the measure is considered less severe than previously proposed actions and leaves scope for continued negotiations, according to market watchers.

President Donald Trump’s remarks about potentially invoking alternative legal routes to advance his tariff policy inject a layer of policy uncertainty too.

Meanwhile, Sensex has recovered from the 82,000–82,500 region, closing positively and holding key channel supports. Immediate downside protection is seen at 82,000–81,800 in case volatility resurfaces, while upside resistance is positioned at 83,500–84,000.

“Looking ahead, markets may remain volatile with key supports at Nifty 25,300 and resistance at 25,700; a sell-on-rise strategy is advisable until bullish confirmation emerges. Investors should monitor global cues and upcoming earnings for directional cues,” said experts.

—AHN

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