FIIs continue selling spree, offloading shares worth ₹1,246cr this week
What's the story
Foreign institutional investors (FIIs) have continued their selling spree in Indian equities for the second consecutive week of June.
In the week ending on June 13, FIIs sold shares worth ₹1,246 crore.
Domestic institutional investors (DIIs), on the other hand, maintained their buying streak with net purchases totaling ₹18,637 crore during this period.
Market reaction
FIIs sold on 3 days; DIIs supported markets all week
The market witnessed FIIs selling on three out of five sessions, with a major outflow of ₹3,831 crore on June 12. This was the highest single-day withdrawal for the week.
However, modest inflows on June 9 and 10 helped cushion some losses.
Meanwhile, DIIs continued to support the markets with strong net inflows every day of the week.
Investor behavior
Strongest net inflow day from DIIs was June 12
The stark contrast between FIIs and DIIs this week highlights the continued resilience of domestic investors.
Despite global uncertainty and foreign outflows, DIIs have remained steadfast in their support for the markets.
The largest net inflow from DIIs was seen on June 12 at ₹9,394 crore, followed by ₹3,504 crore on June 9.
Impact
Investors shun rate-sensitive stocks amid geopolitical tensions
Midweek, the market sentiment turned risk-averse after reports of rising tensions in the Middle East.
This prompted investors to steer clear of rate-sensitive and economically vulnerable sectors such as banking and capital markets.
The BSE Sensex fell by 573 points to close at 81,119, while NSE Nifty50 lost 170 points to settle at 24,719 for the week.
Performance
Sensex, Nifty close nearly 1% lower for the week
For the week, both the BSE Sensex and the NSE Nifty50 indices fell by nearly 1%.
The broader Nifty Bank and Nifty Midcap indices underperformed, falling nearly 2% each.
The weakness in US markets due to rising geopolitical tensions and uncertainty over the US-China trade deal also affected Indian stocks.