FPIs exit, DIIs buy; RBI cut, Fed hopes shape market

• FPIs withdrew ₹11,820 crore from Indian equities in the first week of December, driven by a weakening rupee, bringing the 2025 outflow to ₹1.55 lakh crore.
• Domestic investors (DIIs) offset FPI selling by investing ₹19,783 crore, supported by strong GDP growth expectations and an improving earnings outlook.
• FPI sentiment briefly improved after the RBI's 25-basis-point rate cut and raised FY26 growth guidance to 7.3%.
• TCS and Infosys led value creation among top firms, adding ₹35,910 crore and ₹23,405 crore respectively, while Reliance Industries lost ₹35,117 crore.
• Hopes for a US Fed rate cut could boost global liquidity, but delays in the India–US trade deal and year-end portfolio rebalancing temper foreign investor confidence.

Why It Matters: It highlights crucial market drivers and investor behavior affecting your portfolio.