Foreign Investors Suffer Net Loss of Rs 8363 Crore, Domestic Investors Post Net Gain of Rs 9589 Crore on June 2
Market Sentiment Shifts: Domestic Investors Step in to Offset Foreign Outflows
Foreign investors net sold shares worth Rs 8,363 crore on June 1, while domestic institutional investors (DIIs) net bought shares worth Rs 9,589 crore, marking a significant shift in market sentiment. This comes on the heels of a record net sell-off by Foreign Institutional Investors (FIIs/FPIs) on June 2, worth Rs 21,106 crore, the highest in at least two years.
In the trading session, DIIs purchased shares worth Rs 22,509 crore and sold shares worth Rs 12,919 crore, while FIIs bought shares worth Rs 16,956 crore but sold shares totalling Rs 25,319 crore. The contrasting trends highlight the divergent views of foreign and domestic investors in the Indian market.
A closer look at the year-to-date performance reveals that FIIs have net sold Rs 299,099 crore, while DIIs have net bought Rs 380,213 crore. This stark contrast underscores the differing investment strategies of foreign and domestic investors.
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Market Performance
The Indian equity benchmark Nifty index witnessed a positive close on June 2, 2026. The index opened with a sharp gap-down of 153.45 points at 23,229.15, reflecting weak sentiment at the start of the session. However, buying interest emerged immediately after the gap-down opening, and the recovery gathered momentum throughout the day.
| Index Open | Intraday Low | Intraday High | Index Close |
|---|---|---|---|
| 23,229.15 | 23,229.15 | 23,556.95 | 23,483.55 |
The buying strength remained intact during the second half of the session, pushing the index to an intraday high of 23,556.95. The index eventually settled at 23,483.55, ending the day with a gain of 100.95 points or 0.43% over the previous close of 23,382.60.
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On the daily timeframe, the index formed a strong bullish candlestick pattern after opening at the day's low and closing near the day's high. The price action indicates sustained buying interest from lower levels and suggests that bulls attempted to regain control after the sharp decline witnessed in the previous session.
Investor Takeaway
Investors should be cautious of foreign investors' net selling and focus on domestic investors' net buying.
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