The foreign institutional investors remained net sellers for the fifth consecutive session, offloading equities worth more than ₹10,148 crore on Wednesday, September 30, 2026.
Stock market crash: Analysts flag October rate hike fears, low liquidity, high oil prices, persistent FIIs selling and a long-weekend as some of the key reasons for the market fall on Thursday.
Over the next 12 months, the Nifty is likely to remain within a fairly narrow range - perhaps it can be plus or minus 5 per cent from the current levels, Bhasin said.
Another issue Bernstein highlighted was the nature of India's large-cap companies, which it believes represents a 'bygone economic era'.
Market analysts expect volatility to rise on either side of the market in September based on the F&O and historical market data.
Within the Nifty-500, DIIs were overweight in Consumer, public sector undertaking (PSU) Banks, Oil & Gas, Telecom, Metals, and Technology sectors in the June 2026 quarter, reports suggest.
In contrast, foreign institutional investor (FII) holding declined to a new low of 17 per cent in June 2026, the MOFSL note said.
Among sectoral indices, the BSE IT surged 16% followed by Consumer Durables (9%), Realty (8%) and Auto (6%). On the flip side, Capital Goods and Power indices declined 7% and 6%, respectively.
For the world's third-largest oil importer and consumer, India, a falling rupee presents unique challenges: a weaker economy, wary foreign investors, and declining earnings quality.
Foreign institutional investors invested Rs 14,109 crore in Indian equities in the second half of June, with financial services leading inflows as selling pressure moderated in FMCG and IT
Shareholding data shows that FIIs reduced equity holdings in 11 stocks from Nifty 500 in every single quarter after March 2024. List includes PNB Housing Finance, Eternal and Cyient among others.
In last two financial years, retail investors increased holding in 118 Nifty 500 stocks where FIIs cut stake; of these 65 stocks trade below March 2024 levels amid tepid market mood, shows data.
FIIs are subjected to a 12.5 per cent LTCG on listed shares and bonds held for over 12-months, and a 20 per cent withholding tax on interest from government bonds
Amid the ₹14,261.41 crore sell-off, Sudeep Shah of SBI Securities believes that FIIs build-up short positions in index futures over the last three sessions, indicating increasing bearish bets.
How many bull markets India has had, and why this has implications for FII, retail flows
Elevated crude oil prices further worsen India's inflation-growth trade-off by putting pressure on the rupee, widening the current account deficit, & limiting the scope for aggressive monetary easing
The Nifty Put-Call-Ratio (PCR) stands near 0.71, indicating a cautious-to-negative undertone in the market, says Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities.
FIIs Lose Ground Across Sectors as DIIs Expand in 21 of 24 Segments
Andrew Holland, head - new asset class, Nippon India Asset Management in a Q&Q with Puneet Wadhwa says that the markets are assuming that the West Asia conflict won't be prolonged.
Analysts believe SAIL is expected to deliver improved performance ahead, driven by safeguard duty-led steel price hikes, favourable demand tailwinds, and a focus on cost optimization.