On Tuesday, Foreign Institutional Investors (FIIs) sold Indian stocks worth Rs 12,436.22 crore, and Domestic Institutional Investors (DIIs) sold shares worth Rs 3,318.98 crore. The total sell-off amounted to Rs 15,755 crore.
This selling trend was a sharp contrast to Monday, when both FIIs and DIIs were buying. On Monday, FIIs bought shares worth Rs 6,851 crore, and DIIs purchased Rs 1,914 crore, totaling Rs 8,765 crore in buys.
Due to the heavy selling on Tuesday, India’s major stock indices saw significant losses. The BSE market capitalization dropped by Rs 30 lakh crore to Rs 3,95.50 lakh crore. The S&P BSE Sensex fell to a low of 70,234.43 points, down over 6,200 points from Monday’s close of 76,468.78. It finally ended the day at 72,186.49, a decrease of 4,282.29 points or 5.60%.
The Nifty index also dropped, closing at 21,884.50, down by 1,379.40 points or 5.93%.
Pradeep Gupta, Co-founder and Vice-chairman at Anand Rathi Group, explained that the market’s volatility was due to uncertainty about the election results. The market had rallied on Monday expecting a BJP victory, but the actual results created doubt, leading to increased volatility. Gupta noted that while there is short-term uncertainty, historical data shows that markets tend to recover and perform well in the long term. He advised investors to focus on long-term strategies, keep a diversified portfolio, and avoid panic selling. He emphasized the importance of strong fundamentals and resilience in facing political changes.
The Fear Index, India VIX, spiked to a high of 31.71 during the day before closing at 26.75, marking an intraday increase of over 50%, the highest single-day jump.
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