FII net sell shares worth Rs 5,901 crore, DIIs net buyers of Rs 4,322 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 1.92 lakh crore worth of shares.

Foreign institutional investors (FII/FPI) continued to be net sellers for the second session in a row on April 1 kickstarting the month on a bearish note, offloading shares worth Rs 5,901 crore while domestic institutional investors (DII) were net buyers of shares worth Rs 4,322 crore, provisional data showed.

During the trading session of April 1, FIIs net bought shares worth Rs 10,480 crore and sold shares worth Rs 16,381 crore. DIIs purchased shares worth Rs 12,699 crore and sold shares worth Rs 8,377 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 1.92 lakh crore worth of shares.

Market Performance

Benchmark indices Nifty and Sensex extended their slide on April 1, with investors on edge ahead of former U.S. President Donald Trump’s tariff deadline. Nifty IT and Pharma—most exposed to potential trade shocks—led the sell-off, followed by financial stocks. Meanwhile, fear gripped the Street as India VIX, a key gauge of market volatility, surged 8 percent to inch near 14 levels.

The carnage was widespread. The Nifty IT and Pharma indices—both heavily reliant on U.S. markets—tanked 2.5 and 1.8 percent, respectively. Banking stocks weren’t spared either, with HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and SBI dragging Nifty Bank down over 1 percent. FMCG, Metals, and Infra shed about a percent each, while Nifty Auto dipped 0.5 percent as automakers posted their March sales numbers.

The broader market followed suit, with the Nifty Midcap 100 and Smallcap 100 slipping 0.8 and 0.5 percent, respectively. While these indices have rallied 10-14 percent this year, analysts warn that valuations remain a concern, and more pain could be on the horizon.

"Investors are eagerly awaiting the specifics of these tariffs while also keeping a close eye on ongoing negotiations for a potential Indo-US trade agreement. The IT sector was among the hardest hit due to its substantial exposure to the US market, and real estate stocks fell following Maharashtra's upward revision of ready reckoner rates, which affect property valuations," Vinod Nair, Head of Research at Geojit Investment Limited said.

"Additionally, rising oil prices further dampened market sentiment. Despite the short-term volatility related to tariffs, positive domestic factors such as an expected recovery in earnings growth, potential interest rate cuts by the RBI, and moderation in valuations are likely to provide stability and support for investors," he added.