FII net sell shares worth Rs 11,639 crore, DIIs net buyers of Rs 12,309 crore

All 13 major sectoral indices sank deep into the red, with the BSE Smallcap and BSE Midcap indices taking a heavy hit, slipping over 2 percent each.

Foreign institutional investors (FII/FPI) were net sellers on February 28, offloading shares worth Rs 11,639 crore while domestic institutional investors (DII) were net buyers of shares worth Rs 4,759.77 crore, provisional data showed.

During the trading session of February 28, DIIs net bought shares worth Rs 28,065 crore and sold shares worth Rs 15,756 crore. FIIs purchased shares worth Rs 39,239 crore and sold shares worth Rs 50,878 crore.

For the year so far, FIIs have been net sellers of shares worth Rs 1.46 lakh crore, while DIIs have net bought Rs 1.5 lakh crore worth of shares.

Market Performance

The Sensex and Nifty plunged nearly 2 percent on February 28, dragged down by a broad-based sell-off as fears of a full-blown global trade war and a slowing U.S. economy unsettled investors. The rout wiped out Rs 8.8 lakh crore in market capitalization.

All 13 major sectoral indices sank deep into the red, with the BSE Smallcap and BSE Midcap indices taking a heavy hit, slipping over 2 percent each. IT and financial stocks, where foreign investors have a significant presence, contributed to half of the Nifty 50’s losses.

IT stocks bore the brunt of the sell-off, with the sectoral index plunging over 4 percent after U.S. jobless claims data stoked fears of an economic slowdown. The rout has deepened through the week, with the IT index sliding nearly 8 percent—far steeper than the Nifty 50’s 2 percent decline.

"The Indian markets have seen a broad-based decline, with the Nifty 50 down 15.6% from its 52-week high, losing 2.9 percent in the past week. The sell-off has been sharper in the broader markets, with Nifty Midcap 150 down 21.1 percent, Smallcap 250 down 25.6 percent, and Microcap 250 slipping 26.2 percent from their highs. The last week alone saw small and microcaps falling over 5-6 percent, reflecting investor risk-off sentiment," Krishna Appala, Senior Analyst at Capitalmind Research said.

"Looking back at past corrections—whether it was Lehman’s crash, the Taper Tantrum, Demonetization, or Covid—these periods always appeared as strong buying opportunities in hindsight. Today’s correction may feel painful, but history suggests that years from now, it will be viewed similarly," he added.

Appala said said over the past 30 years, markets have fallen over 20% in multiple years, yet ended positive in 22 out of those 30 years. Market discipline matters in tough times just as much as in strong ones, and achieving long-term returns isn’t a straight path—it includes periods of steep drawdowns and sharp recoveries.

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