FIIs offloads Rs 5,901 crore worth of shares on April 1; HDFC Bank, ICICI Bank takes a hit
FIIs offloads Rs 5,901 crore worth of shares on April 1
Benchmark indices Nifty and Sensex continued their decline on April 1, as investors remained cautious ahead of former U.S. President Donald Trump’s tariff deadline. The Nifty IT and Pharma sectors, which are highly vulnerable to potential trade disruptions, led the sell-off.
For the year so far, Foreign Institutional Investors (FIIs) have been net sellers of shares worth Rs 1.46 lakh crore, while Domestic Institutional Investors (DIIs) have net bought Rs 1.92 lakh crore worth of shares.
On April 1, FIIs were net sellers, offloading Rs 5,901 crore worth of shares. Meanwhile, DIIs were net buyers, purchasing shares worth Rs 4,322 crore, as per provisional data. FIIs net bought shares worth Rs 10,480 crore and sold shares worth Rs 16,381 crore. On the other hand, DIIs bought shares worth Rs 12,699 crore and sold shares worth Rs 8,377 crore during the same session.
Market Performance Overview
The broader market mirrored the trend, with both Nifty Midcap 100 and Smallcap 100 indices slipping by 0.8% and 0.5%, respectively. Despite rallying by 10-14% this year, analysts warn that valuations remain a concern, and further volatility could be on the cards.
The market was weighed down by concerns over potential tariff implications and rising oil prices. The Nifty IT and Pharma indices, both highly dependent on U.S. markets, dropped by 2.5% and 1.8%, respectively. Banking stocks also took a hit, with HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and SBI contributing to a more than 1% drop in the Nifty Bank index.
Vinod Nair, Head of Research at Geojit Investment Limited, noted that investors are anxiously awaiting details on the impending tariffs and the progress of Indo-US trade negotiations. He added that while the short-term volatility may persist, positive domestic factors such as expected earnings growth, potential interest rate cuts by the RBI, and more reasonable valuations could offer some support for the markets.
As of now, the India VIX, a key volatility gauge, has surged by 8%, inching toward the 14-level mark, reflecting heightened market nervousness.
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