Foreign institutional investors (FIIs) continued their selling spree in the Indian stock market. On Friday alone, FIIs offloaded shares worth ₹6,450 crore. Since the beginning of the year, the total sell-off has reached ₹1.21 lakh crore. However, domestic investors have purchased shares worth ₹2.75 lakh crore, providing support to the market. Meanwhile, both the Sensex and Nifty indices experienced declines.
₹6,450 Crore Sell-off in a Single Day
On May 30th, FIIs withdrew ₹6,450 crore from the Indian stock market. Conversely, domestic institutional investors (DIIs) bought shares worth ₹9,095 crore, offering some stability to the market. During trading, domestic investors purchased shares worth ₹20,673 crore and sold shares worth ₹11,577 crore. Similarly, foreign investors bought shares worth ₹44,434 crore and sold shares worth ₹50,884 crore.
Total Sell-off to Date
Since the beginning of 2024, FIIs have sold shares worth ₹1,21,414 crore. In contrast, domestic investors have purchased shares worth ₹2,75,264 crore, maintaining market stability.
Weak Market Performance
The Indian stock market displayed weakness last Friday. The Nifty 50 index closed 0.3 percent lower at 24,751, while the Sensex saw a 0.22 percent decline. Midcap and smallcap stocks also showed slight weakness, with both Nifty Midcap 100 and Smallcap 100 indices falling by 0.1 percent. Selling pressure was evident in the metal, IT, and auto sectors.
Sustained Confidence from Domestic Investors
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, stated that domestic investor buying is supporting the market. India's economic situation remains b. Recent data indicates that the country's GDP growth rate was 7.4 percent in the fourth quarter of fiscal year 2025, exceeding the projected 6.7 percent. The overall GDP growth for fiscal year 2025 was recorded at 6.5 percent.
Impact of Global Markets
Khemka explained that concerns persist regarding global economic growth. The US economy contracted by 0.2 percent in the first quarter, better than the projected 0.3 percent decline. This has created uncertainty surrounding the policies of the US Federal Reserve. A repo rate cut is anticipated next week, which could lead to fluctuations in government bank stocks. Additionally, monthly sales and volume data in the auto sector may also cause market movement.
