Foreign institutional investors (FIIs) turned net buyers worth Rs 1,166 crore in India on Friday after overall selling eased sharply this week as market sentiment improved, analysts said on Saturday.

FIIs remained net sellers for the ninth straight week but their weekly selling moderated to Rs 8,991 crore from Rs 30,294 crore the previous week.

Domestic institutional investors stayed net buyers for a ninth consecutive week at Rs 7,813 crore, though they were net sellers of Rs 3,661 crore on Friday. Month‑to‑date, DII net buying of Rs 48,168 crore has almost fully absorbed FII net selling of Rs 48,769 crore.

“The sharp moderation in FII selling and Friday's reversal in flows suggest sentiment is stabilising, though elevated crude keeps the recovery vulnerable,” analysts said.

Investors remain keen on Brent crude price trajectory and US–Iran developments, while domestic focus stays on Q2FY27 earnings and the RBI MPC minutes due mid-week, which should shed light on the 4-2 split over the shift to a calibrated-tightening stance, they added.

Benchmark indices rebounded strongly last week, with the Nifty extending its recovery for a second straight week. A firmer rupee and easing US 10-year Treasury yields supported sentiment, though Brent crude holding near $105 per barrel kept inflation and external-risk concerns in focus.

The Nifty found buying support near the 22,300 level after a weak start and went on to gather momentum through the week. It closed above 23,000 on Friday at the week's high of 23,146.15, up 2.8 per cent week-on-week.

The Nifty is up 2.3 per cent from its September-end close of 22,620.45 and 4.1 per cent above its October 8 closing low of 22,231.80.

Another report earlier this week said Indian markets remained under pressure primarily due to continuous selling by foreign institutional investors (FIIs) over fears relating to the effect of inadequate monsoon rains, rising cost of crude and agricultural commodities, high bond yields, and the growing Iran-US conflict.