FIIs log worst outflow of June with ₹5,266 crore selloff on June 24

Foreign institutional investors (FIIs) pulled out ₹5,266 crore from Indian equities on Tuesday, recording their largest single-day outflow for June, provisional stock exchange data showed. The heavy selloff came amid persistent geopolitical tensions and global risk aversion.

Domestic institutional investors (DIIs), however, counterbalanced the foreign exit with net purchases worth ₹5,210 crore - almost matching the selloff rupee for rupee.

This is the sharpest FII outflow of the month, surpassing June 12’s ₹3,831 crore selloff. Over the past two sessions alone, FIIs have withdrawn over ₹7,100 crore.

Despite volatility in global markets and recent cautious commentary by central banks, domestic flows remain robust, highlighting the increasing role of retail and mutual fund participation in supporting Indian equities.

FIIs have been net sellers in Indian equities through most of June, while DIIs have bought on all days except June 20.

Markets update

The benchmark indices ended Tuesday’s session in the green but surrendered much of their early gains, as conflicting signals around the Israel-Iran ceasefire kept traders wary.

The NSE Nifty 50 briefly surged past the 25,300 mark for the first time this year, hitting a fresh record high in intra-day trade. However, it settled at 25,044, up 72 points. The S&P BSE Sensex added 158 points to close at 82,055 but came off sharply from its day's peak—shedding over 900 points in the process.

Markets opened on a strong footing amid optimism over reports of a temporary ceasefire in the Middle East, with investors hopeful for de-escalation in the region. But sentiment turned cautious as the day progressed, following conflicting reports of renewed missile exchanges and military activity between Israel and Iran.

Traders booked profits near record highs, as the uncertain geopolitical backdrop curbed risk appetite despite generally constructive domestic cues. Analysts said broader sentiment remains resilient, but market participants are likely to stay cautious until clarity emerges on the situation in West Asia.

“The markets low on Friday June 13 is probably ominous for the bears. It looks like today’s high of about 25,300 and change, the markets have registered a low at 24,750 and change. So, there is a good possibility that markets could accelerate higher to record highs by the end of July or maybe earlier. I would have been happier had the market hold on to the gains around 25,200 and 25,300, as it would have been far more convincing and would have eliminated that other possibility of markets going one more time slightly below the June low," Jai Bala, CMT, Cashthechaos.com told CNBC-TV18.