The session saw FIIs offload ₹9,980.22 cr of equities, a sharp jump from Monday’s ₹5,353.22 cr net sell‑off—doubling the previous day's outflow according to BSE data.
Domestic institutional investors, by contrast, poured ₹6,952.71 cr into the market, buying ₹46,261.11 cr and selling ₹39,308.4 cr. Their net inflow offsets the FII outflow, yet the combined net selling of ₹3,027.51 cr still weighed on sentiment.
The Nifty closed at 22,716, down 64 points, while the Sensex slipped 243 points to 72,529. These falls came after the indices hit fresh lows during midday, only to rebound sharply in the final hour.
Market breadth was thin: the advance‑decline ratio skewed 2:3, with 30 Nifty stocks down, some dropping as much as 3%. The Nifty Midcap fell 595 points to 59,319, and the Nifty Bank slipped 212 points to 54,260, both below their session lows.
Sector‑specific moves underscored the weakness. The Nifty IT index fell 1.2%, led by Wipro’s 3.5% slide, while Dr. Reddy’s Laboratories surged 5% on a brokerage upgrade. Insurance names PB Fintech and TurtleMint lost 6% and 5% respectively, tightening the defensive rally.
Looking ahead, market participants are eyeing RBI policy statements next week, as well as the upcoming earnings releases from IT and pharma giants. The 7% September decline could prompt a sharper sell‑off if policy signals remain dovish, while a dovish stance may offer a reprieve for the lagging sectors.