FII net sell shares worth Rs 3,405 crore, DIIs net buyers of Rs 4,851 crore

Beyond trade concerns, the tariffs could stoke inflation in the U.S., potentially compelling the Federal Reserve to keep interest rates higher for longer

Foreign institutional investors (FII/FPI) were net sellers on March 04, offloading shares worth Rs 3,405 crore while domestic institutional investors (DII) were net buyers of shares worth Rs 4,851 crore, provisional data showed.

During the trading session of March 04, DIIs net bought shares worth Rs 13,542 crore and sold shares worth Rs 8,690 crore. FIIs purchased shares worth Rs 12,022 crore and sold shares worth Rs 15,428 crore.

For the year so far, FIIs have been net sellers of shares worth Rs 1.54 lakh crore, while DIIs have net bought Rs 1.65 lakh crore worth of shares.

Market performance

Sensex and Nifty closed lower on March 4 as fresh U.S. tariffs on China, Canada, and Mexico unsettled global markets, dragging investor sentiment. The Sensex logged its third consecutive decline, while the Nifty 50 extended its losing streak to ten sessions—its longest since the index's inception nearly three decades ago.

Beyond trade concerns, the tariffs could stoke inflation in the U.S., potentially compelling the Federal Reserve to keep interest rates higher for longer—a move that could weigh on foreign investment in emerging markets like India.

"After showing volatility with weak bias on Monday, Nifty shifted into a smart upside recovery from the lows on Tuesday and closed the day slightly lower with a recovery note. After opening with a negative note, the market started with smart upside recovery from near the 22,000 mark and held the psychological levels towards the end and closed near the highs," says Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

He added that the selling momentum seems to have started to decrease near the psychological support of the 22,000 mark. A sustainable move above the immediate hurdle of 22,260 could open further upside bounce in the market. Immediate support is placed at 21950 levels.