FIIs offload over ₹20,128 crore shares amid rising US yields

On Thursday, Indian equities opened lower as global cues painted a mixed picture. By 09:22 a.m., the BSE Sensex recorded a loss of 160 points, or 0.22 percent, settling at 72,319, while the NSE Nifty fell 79 points, a 0.35 percent decline, to 22,541.

The automotive sector experienced the steepest fall, making Nifty Auto the top loser. The downturn spread to Nifty Consumption, Real Estate, Media, Infrastructure, Healthcare, India Defence, Commodities, Power, Oil & Gas, Pharma, FMCG, Energy and PSU banking indexes, all closing in the red.

Strong buying pressure was observed in the IT, Private Bank and Financial Services sub‑indices, which helped limit the overall market dip.

Both mid‑cap and small‑cap benchmarks were also down. The Nifty Midcap 100 slipped 404 points (‑0.68 %) to 58,936, and the Nifty Smallcap 100 dropped 197 points (‑1.04 %) to 19,044.

Across the region, Asian markets were split: Tokyo, Taipei and Seoul posted gains, whereas Jakarta fell. In the United States, the Dow Jones ended Wednesday down 0.86 percent, while the Nasdaq rose 0.24 percent.

According to market insiders, foreign institutional investors accelerated their selling, disposing of shares worth approximately ₹20,128 crore over the last two sessions. The increase in the U.S. 10‑year Treasury yield to 5.3 percent may keep the pressure on Indian stocks. Interestingly, despite heavy selling on the secondary market, FIIs continue to participate in primary market issues and are buying high‑priced mid‑cap and small‑cap equities.

Analysts recommend that investors capitalize on the current softness to accumulate quality large‑cap growth stocks, as the risk‑reward equation remains appealing.