FIIs Sell ₹8,293 Crore in Shares as DIIs Net Buy ₹13,235 Crore Amid Market Volatility

On October 7, the Indian stock market experienced significant fluctuations as Domestic Institutional Investors (DIIs) net bought shares worth ₹13,235 crore, while Foreign Institutional Investors (FIIs) net sold ₹8,293 crore, according to provisional data from the National Stock Exchange (NSE). This marked a continuation of the market's longest losing streak since October 2023.

During the trading session, DIIs purchased shares worth ₹23,924 crore and sold equities totalling ₹10,679 crores. In contrast, FIIs bought shares worth ₹14,057 crore but offloaded a substantial ₹23,351 crore, reflecting ongoing bearish sentiment in the market.

Year-to-date figures show that FIIs have net sold shares worth ₹1.78 lakh crore, while DIIs have been active buyers, accumulating shares worth ₹4.58 lakh crore.

As the trading day closed, the Sensex fell by 638.45 points, or 0.78%, to end at 81,050, while the Nifty dropped 218.80 points, or 0.87%, settling at a lower level. Major Nifty losers included NTPC, Adani Ports, Adani Enterprises, SBI, and Coal India, while the few gainers comprised ITC, Bharti Airtel, Trent, M&M, and Infosys.

Market analysts have attributed the day's decline to negative global cues, weak international indices, and growing concerns regarding the BJP's electoral setbacks in two states. This situation has prompted profit booking ahead of the Maharashtra elections. Vikram Kasat, Head - Advisory at PL Capital - Prabhudas Lilladher, noted that geopolitical tensions and anticipation surrounding the Reserve Bank of India's monetary policy decisions further fueled the bearish sentiment.

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Despite these domestic challenges, global stock markets displayed some resilience, with a notable market closing in the green. The trajectory of the Indian market will likely depend on upcoming global developments, investor reactions to electoral outcomes, and the implications of the RBI's policy stance moving forward.