Domestic Institutions Purchase ₹10,860 Crore Shares in Heaviest Buying Since April 2025

India's domestic institutions executed their largest share purchase in 4 months on August 7, 2025, buying a net ₹10,860 crore ($1.2 billion) worth of local stocks, as per news reports. The massive buying provided crucial market support amid President Donald Trump's tariff escalation, helping the benchmark NSE Nifty 50 Index close slightly higher despite foreign institutional selling pressure.

₹10,860 Crore Net Purchase Offsets Foreign Outflows

The substantial domestic institutional buying effectively offset foreign investor outflows on August 7, 2025, demonstrating the resilience of India's domestic capital markets. Large sell-downs in Kotak Mahindra Bank Ltd and Eternal Ltd particularly spurred domestic mutual funds and insurers to step in as key buyers in 2 block deals, showcasing strategic market support during volatility.

Domestic Institutions Buy $5,000 Crore vs Foreign Sales of $1,100 Crore in 2025

Throughout 2025, domestic institutions have purchased approximately $50 billion worth of shares, significantly dwarfing the more than $11 billion in net sales by foreign investors, as per news reports. This demonstrates the critical role of domestic capital in supporting Indian equity markets during periods of global uncertainty and foreign investor risk aversion.

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Consistent Market Support During Recent Downturns

Domestic institutions have consistently supported Indian markets during downturns in recent years, establishing a pattern of counter-cyclical buying that provides stability. Their heaviest buying since April 2025 on August 7 reinforces this trend, particularly significant given the context of US tariff escalation affecting market sentiment and foreign investor confidence.

Block Deal Activity Highlights Strategic Institutional Support

The participation of domestic mutual funds and insurers in large block deals involving Kotak Mahindra Bank and Eternal Ltd underscores strategic institutional support during market stress. This targeted buying approach helps maintain liquidity and price stability in individual stocks whilst contributing to overall market resilience during challenging trading sessions.

Conclusion

Indian domestic institutions' ₹10,860 crore net share purchase on August 7, 2025, represents the heaviest buying since April and demonstrates robust market support amid Trump tariff escalation. With 2025 domestic buying totalling $50 billion versus $11 billion foreign sales, the consistent institutional support through block deals and strategic purchases reinforces India's domestic capital market strength during global uncertainty periods.

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