Strong DII buying of Rs 5,109 crore offsets heavy FII outflows in stock market
Mumbai, June 1
Strong buying by domestic institutional investors helped cushion the market decline on Monday even as foreign institutional investors continued to remain net sellers in Indian equities.
According to exchange data, FIIs/FPIs net sold shares worth Rs 3,912 crore during the session, while DIIs net purchased equities worth Rs 5,109 crore.
The continued support from domestic investors came after FIIs recorded massive selling of Rs 21,106 crore on May 29, marking their highest single-day net outflow from Indian equities in at least two years.
During Monday's trading session, DIIs bought shares worth Rs 15,226 crore and sold shares worth Rs 10,117 crore.
In comparison, FIIs purchased equities worth Rs 17,726 crore but sold shares totalling Rs 21,638 crore.
Despite domestic buying support, benchmark equity indices ended lower amid weakness in auto, FMCG, PSU bank and realty stocks.
The Sensex closed 508.40 points, or 0.68 per cent, lower at 74,267.34, while the Nifty declined 165.15 points, or 0.70 per cent, to settle at 23,382.60.
Market breadth remained weak as about 1,505 shares advanced, while 2,665 shares declined on the BSE. Around 180 shares remained unchanged.
Sectorally, auto, power, FMCG, PSU Bank, consumer durables and realty indices fell between 1 and 3 per cent.
However, buying interest in technology stocks helped limit losses, with the IT index gaining 2.6 per cent.
Media stocks also advanced 1.3 per cent, while the metal index ended 0.5 per cent higher.
Among the major laggards on the Nifty were Hindustan Unilever, Tata Consumer Products, ITC, Shriram Finance and Mahindra & Mahindra.
On the gaining side, Tech Mahindra, Infosys, TCS, Coal India and JSW Steel ended with strong gains.
So far in 2026, FIIs have remained net sellers of Indian equities worth Rs 2.99 lakh crore. In contrast, DIIs have continued to provide support to the market with net buying of Rs 3.80 lakh crore during the same period.
— IANS
Reader Comments
With 2.99 lakh crore FII outflow in 2026 so far, our DIIs deserve a medal for keeping markets afloat 🇮🇳. But why are autos and FMCG falling? Is it just global factors or is there a consumption slowdown in rural India? Need some honest analysis.
Panic sell-off by FIIs on May 29 was alarming, but DIIs buying Rs 5,109 crore shows domestic confidence is unshaken 🇮🇳. The IT sector saving the day again - Tech Mahindra up 2.6%! Let's see if this trend continues or if FIIs come back after global uncertainties settle.
Interesting to see Indian retail investors and domestic institutions acting as shock absorbers. While FIIs flee due to global rate hike fears, our DIIs are buying the dip. The divergence between IT and other sectors is stark - tech seems immune to the auto/FMCG slowdown. Smart money buying tech?
2,665 stocks declined vs 1,505 advanced - market breadth is scary 😰. But happy to see DIIs buying heavily, else Nifty would have fallen much more than 165 points. Long-term investors shouldn't panic, but short-term traders need caution.
DIIs buying Rs 5,109 crore is great, but we need to question why FIIs are running away at this pace. Is it just global factors or are there policy-level issues? The IT index shining shows that companies with global earnings are unaffected, but local consumption stories are struggling. Something for policymakers to ponder.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.