Foreign Institutional Investors Sustain Net Selling Trend in Equities, Domestic Institutional Investors Post Significant Gain
Market Volatility Continues as Foreign Investors Sell Shares Worth Rs 8,438 Crore
On May 11, foreign investors (FIIs/FPIs) net sold shares worth Rs 8,438 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 5,940 crore. This marks the highest FII selling since April 24, when FIIs offloaded shares worth Rs 8,828 crore.
During the trading session, DIIs purchased shares worth Rs 21,626 crore and sold shares worth Rs 15,687 crore. Conversely, FIIs bought shares worth Rs 12,814 crore but sold shares totalling Rs 21,251 crore.
| Investor Type | Net Buying/Selling (Rs crore) | Net Buying/Selling (Rs lakh crore) |
|---|---|---|
| FIIs | -8,438 | -0.084 |
| DIIs | 5,940 | 0.059 |
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For the year so far, FIIs have been net sellers of shares worth Rs 2.59 lakh crore and DIIs have net bought shares worth Rs 3.18 lakh crore.
The market witnessed a sharp correction, with the Nifty dropping 360.30 points or 1.49 percent to settle at 23,815.85. The Sensex tanked 1,312.91 points or 1.7 percent to close at 76,015.28.
Ajit Mishra, Senior Vice President of Research at Religare Broking, noted that selling pressure was broad-based, with most sectoral indices closing lower. Realty, energy, and auto stocks witnessed heightened weakness, while defensive pockets such as pharma and FMCG displayed relative resilience.
The correction was primarily triggered by a spike in crude oil prices following renewed geopolitical tensions surrounding the US-Iran situation after the US President expressed dissatisfaction over Iran's peace proposal. Additionally, the Prime Minister's remarks on fuel conservation and import moderation raised concerns over growth moderation and external sector stress.
Persistent foreign institutional selling, rising global bond yields, and weakness in the rupee added to the cautious undertone. Meanwhile, stock-specific earnings reactions continued to drive selective volatility across sectors.
Given the prevailing volatility, Mishra suggested that traders should avoid aggressive index positions and wait for clearer directional cues.
Investor Takeaway
Investors should be cautious of the sustained net selling trend by Foreign Institutional Investors and the impact on the market.
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