Foreign institutional investors stepped up selling in Indian equities on Tuesday, offloading shares worth ₹3,809.99 crore on a net basis, according to provisional exchange data. Domestic institutional investors , meanwhile, continued to remain net buyers, providing buying support to the market.
FIIs bought equities worth ₹10,637.17 crore during the session, while their selling stood at ₹14,447.16 crore, resulting in net outflows of ₹3,809.99 crore. DIIs bought equities worth ₹14,098.64 crore and sold shares worth ₹9,978.57 crore, resulting in net inflows of ₹4,120.07 crore.
The latest data marks a sharp increase in foreign selling from Monday, when FIIs were net sellers of ₹576.20 crore. FIIs had bought equities worth ₹10,637.17 crore and sold shares worth ₹11,213.37 crore on Monday. Domestic institutions, meanwhile, strengthened their buying on Tuesday.
DIIs were net buyers of ₹2,797.27 crore on Monday, compared with net purchases of ₹4,120.07 crore on Tuesday. The divergent trend in institutional flows comes as foreign investors remain net sellers while domestic institutions continue to provide support to Indian equities.
Separately, Indian equities gave back some of their recent gains on Tuesday, with the Nifty snapping a four-session winning streak in a volatile session. The index fell 85 points to end at 23,329, while the Sensex slipped 330 points to 74,529. The Nifty Bank fell 255 points to 56,215, while the Nifty Midcap index shed 50 points to 61,963.
The market, however, recovered from its lows as crude prices eased, with Brent slipping below $100 a barrel amid fresh developments around the Iran conflict. Brent fell towards $99 after losing nearly 8% over the previous four sessions. Japan-based news agency Kyodo News reported that Iran had proposed reopening the Strait of Hormuz within seven days if the US eases its military pressure.
The report added to hopes that a diplomatic route could emerge, taking some pressure off global energy supplies.