📉 Stock Crash & FII Exodus: What’s the Latest?

 

1. Stock Retreat Amid Panic Selling

Over the past year, the stock has been on a steady decline, prompting a concerned investor to offload a portion of their holdings. That move exacerbated the fall, triggering further panic and accelerating the plunge.

 

2. FIIs Turn Sellers

Foreign Institutional Investors (FIIs), once supportive, began pulling funds in recent months:

 

In the early half of May, FIIs withdrew a net ₹2,725 crore from Indian equities—especially targeting IT, banking, and auto sectors—as risk aversion spiked .

 

Overall, FIIs became net sellers in June as well, offloading around ₹4,892 crore through June 13—reversing their heavy buying from May’s ₹19,860 crore surge .

 

 

3. DIIs Step In to Stabilize

Domestic Institutional Investors (DIIs) have taken the opposite stance—buying aggressively. Through mid-June alone, DIIs purchased approximately ₹44,000 crore worth of equities, helping contain the broader market slide .

 

4. Why FIIs Are Pulling Out

The sell-off by FIIs is driven by:

 

Elevated global interest rates and strong U.S. bond yields

 

A strengthening U.S. dollar

 

Rising geopolitical risks and elevated market valuations

 

Concerns over corporate earnings in the current quarter

 

 

5. What It Means Going Forward

FIIs continue to exit, especially in large-cap and cyclical sectors. DIIs are filling the gap—but if FII outflows persist and DII buying slows, stock prices could face steeper declines. Analysts advise focusing on quality, defensive sectors, and tracking global yield trends like the U.S. dollar index for signals of a turnaround .