Foreign Institutional Investors Suffer Net Outflows of Rs 3,912 Crore, Domestic Institutional Investors Record Net Inflows of Rs 5,109 Crore on June 1

Market Turmoil Continues as Foreign Investors Unload Shares

On June 1, foreign investors, including Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs), net sold shares worth Rs 3,912 crore, marking a significant departure from their previous behavior. In contrast, domestic institutional investors (DIIs) net bought shares worth Rs 5,109 crore during the same period.

This development comes on the heels of a significant sell-off by FIIs on May 29, when they net sold Indian equities worth Rs 21,106 crore, their highest in at least two years. The trading session on June 1 saw DIIs purchasing shares worth Rs 15,226 crore and selling shares worth Rs 10,117 crore, while FIIs bought shares worth Rs 17,726 crore but sold shares totalling Rs 21,638 crore.

The year-to-date trend also reveals that FIIs have been net sellers of shares worth Rs 2.99 lakh crore, while DIIs have net bought shares worth Rs 3.80 lakh crore.

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Market Performance

At close, the Sensex was down 508.40 points or 0.68 percent at 74,267.34, and the Nifty was down 165.15 points or 0.70 percent at 23,382.60. About 1505 shares advanced, 2665 shares declined, and 180 shares remained unchanged.

The market performance was mixed across sectors, with auto, power, FMCG, PSU Bank, Consumer Durables, and realty indices down 1-3%, while the IT index rose 2.6%, the media index rose 1.3%, and the metal index rose 0.5%. HUL, Tata Consumer, ITC, Shriram Finance, and M&M were among the major losers on the Nifty, while gainers included Tech Mahindra, Infosys, TCS, Coal India, and JSW Steel.

Market Outlook

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From a technical standpoint, the Nifty continues to trade below all key moving averages, indicating a prevailing downtrend across timeframes. The immediate support is placed at the recent swing low of 23,262, and a decisive breach could accelerate downside momentum toward 23,000. On the upside, the 23,700–23,800 zone is likely to act as a resistance band.