The strong domestic flow, meanwhile, offset the selling by foreign portfolio investors (FPIs) during CY25, who pulled out $23.3 billion (Rs 2.03 trillion) from the domestic equity markets.
The near-record selling by foreign investors has come at a time when policymakers have already played their best cards, for now, analysts opine.
Stock market crash: The Sensex fell 827.27 points, or 1.01 per cent, to an intraday low of 80,332.41, while the Nifty50 dropped 261.4 points, or 1.05 per cent, to 24,629.45 levels.
Kotak Securities said that $90 billion of DII inflows and a flat market show that flows alone don't drive markets
Thus far in calendar year 2025 (CY25), foreign institutional investors have dumped Indian equities worth Rs 1.17 trillion, shows NSDL data
DIIs - which include mutual funds, insurance companies, and pension funds -- poured $19.7 billion into Indian stocks last quarter, far ahead of the $5.4 billion invested by FIIs.
Indian Rupee outlook: Analysts suggest that the local unit might largely stay range-bound between 86.50 to 88.50 levels
Analysts have largely attributed the selloff to the trade uncertainty triggered by Donald Trump's tariff-related policies
Why stock markets are falling: US Trump tariffs, F&O expiry, and FII selling are some of the reasons why Sensex, Nifty are down today
FIIs biggest investment was in the BFSI sector in June 2025, followed by Oil and Gas, and Automobile sectors
The benchmark Nifty50 index has risen by 5.92 per cent, while the 30-stock Sensex has advanced 5.01 per cent, so far in H1-CY25
The renewed interest by FIIs in Indian stock markets could be a one-off, said market analysts, who expect flows - both domestic and foreign - to remain volatile going ahead depending on news flow
In the US, foreign-domiciled funds withdrew $10 billion from effectively reversing inflows seen in April, as per Elara Capital
Banking, financial services, and insurance (BFSI), telecom, and metals saw the highest FII flows in March 2025
The benchmark indices -Nifty and the 30-stock Sensex - entered the 'correction' zone, falling 15.2 per cent and 14 per cent, respectively, from their September peak
Markets Today Highlights: The broader markets outperformed the benchmarks, with smallcap shares leading the charge as the Nifty Smallcap100 index settled higher by 3.32 per cent
Stock Market Outlook 2025: Analysts believe India stock markets may continue to witness market consolidation, at least in the first half of 2025
The surge in IPO activity comes after a slowdown triggered by poor listings, weak demand, foreign portfolio investor (FPI) outflows, and earnings disappointments
Stock Market Highlights on June 6: Among sectors, the Nifty Realty climbed 4.7 per cent, the Nifty PSU Bank 2.9 per cent, and the Nifty IT 2.8 per cent
FIIs index futures long-short ratio plummeted to 0.15 on May 03, as against 0.98 a day earlier in the F&O segment. In cash market, net monthly sales rose to Rs 43,800 cr, the highest since June 2022.