FIIs sell nearly ₹1887 crore in Indian stocks; DIIs pull out ₹2.23 crore - 2 Aug
₹1,877.84 crore, while domestic institutional investors (DIIs) also sold securities for a net total of ₹2.23 crore. The decline was triggered by a sell-off in global markets after Fitch downgraded the US credit rating from AAA to AA+. The downgrade was due to concerns about the US government's rising debt levels and the potential for a recession.
The surge in the US 10-year bond rate, which topped 4% for the first time since 2011, also alarmed investors. Rising bond yields are interpreted as an indication that investors are growing more risk-averse. PSU banks, metals, and auto stocks were the biggest losers on Wednesday, while FMCG and healthcare stocks bucked the trend and showed resilience.
The S&P BSE Sensex fell 676 points, or 1.02%, to close at 65,782, while the Nifty 50 index lost 207 points, or 1.05%, to close at 19,526. The broader market lagged behind the main indices. The S&P BSE Mid-Cap index fell 1.39%, while the S&P BSE Small-Cap index down 1.18%.
Major drags included Tata Motors (down 3.19%), Bajaj Finserv (down 2.89%), HDFC Bank (down 1.25%), and Reliance Industries (down 1.05%). Market breadth was negative. On the BSE, 1,176 shares climbed while 2,428 declined.
134 shares remained unchanged. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services said, “Domestic Equities saw downward pressure following the global peers amid weak economic data and a downgrade in US sovereign credit rating. Nifty opened lower and witnessed profit booking throughout the session to close with a loss of 219 points (-1.1%) at 19514.
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