Nifty 50 slipped 1.11% to 22,888 on Monday as heavy selling in private banking, IT, and FMCG stocks overshadowed domestic institutional buying. Foreign institutional investors recorded their lowest daily net selling of October at ₹1,149 crore, while domestic institutions provided support by purchasing shares worth ₹3,201 crore.
Indian stock markets experienced a sharp correction on Monday, with the Nifty 50 falling 257.20 points, or 1.11%, to close at 22,888.95. The BSE Sensex followed a similar trajectory, declining 876.37 points to finish the session at 73,852.90. This downward move persisted despite a cooling in the aggressive selling trend seen from foreign investors throughout the month.
Foreign institutional investors (FIIs) recorded a net outflow of ₹1,148.64 crore on Monday, which is their smallest daily withdrawal in October. While this easing of selling pressure is a shift from the high-volume exits seen earlier in the month, the overall sentiment remains cautious. October has seen significant FII net selling totaling ₹49,917.65 crore over 12 trading sessions.
Domestic institutional investors (DIIs) have continued to act as a stabilizer for the Indian markets. On Monday, they purchased ₹3,201.19 crore worth of equities, effectively offsetting the foreign exodus. Throughout October, DIIs have funneled ₹51,369.32 crore into local markets, covering approximately 103% of the capital pulled out by foreign players. However, this domestic support was not enough to prevent a broad-based decline across major indices.
The market weakness was driven primarily by sector-specific selling, particularly in heavyweights within the banking, IT, and FMCG segments. The Nifty Private Bank index was a significant drag, plunging 1.85% during the session. Similarly, the FMCG and IT sectors faced selling pressure, dropping 1.44% and 1.28% respectively. This rotation out of these sectors overshadowed the gains seen elsewhere.
In a divergence from the broader market trend, public sector banks provided some resilience, with the Nifty PSU Bank index registering a gain of approximately 2.4%. While the aggregate year-to-date inflows for Indian markets remain positive at ₹2,48,685 crore, Monday’s session highlighted that index performance is currently sensitive to high-frequency selling in key private banking and technology stocks. Investors will likely focus on whether this sectoral rotation continues or if the broader market can find support as FII selling volume moderates.