Sensex Plunges Amid Technology Rout as FIIs Finally Turn Net Buyers in Indian Equities

Sensex Plunges Amid Technology Rout as FIIs Finally Turn Net Buyers in Indian Equities​

Indian stock markets registered a sharp correction on Tuesday, tracking global peers amidst ongoing technology sector rout and broad-based selling pressure. The BSE Sensex plunged 893 points or 1.16 percent to close at 76,201, while the Nifty index fell by 279 points or 1.16 percent, settling at 23,824.

The market downturn was accompanied by weakening sentiment across major sectors, though pharmaceutical and healthcare indices managed to cushion the decline. The selling pressure extended into the broader markets, with the Nifty Midcap index falling 1.05 percent and the Nifty Smallcap index declining 0.5 percent.

Institutional Flows: DIIs Surge as FIIs Turn Around​

Provisional exchange data highlights a shift in institutional investor activity on June 23, 2026. Foreign Institutional Investors (FIIs) emerged as net buyers for the first time recently, purchasing shares worth Rs 18 crore. Domestic Institutional Investors (DIIs), however, demonstrated stronger buying interest, netting a purchase of Rs 680 crore.

Analyzing the day's trading activity, DIIs bought shares valued at Rs 16,863 crore and sold Rs 16,183 crore. FPI/FIIs bought Rs 15,396 crore against sales of Rs 15,378 crore during the session.

Despite the daily positive movement for FIIs, the year-to-date picture shows a disparity in sentiment. So far this fiscal year, FIIs have been net sellers amounting to nearly Rs 3.45 lakh crore worth of shares. In contrast, DIIs have maintained strong purchasing momentum, netting buys valued at Rs 4.48 lakh crore.

Sectoral Corrections and Market Drivers​

The market witnessed significant volatility, with technology stocks facing particular headwinds. The domestic IT sector's performance reflected persistent concerns over AI-led disruptions alongside the ongoing global tech rout. Metals indices faced a sharp decline due to falling global prices and underlying demand concerns amid an uncertain global outlook.

Several key sectors were impacted by this correction. Nifty Metal, IT, Bank, Financial Services, Media, Realty, Consumer Durables, and Oil & Gas all corrected between 1 to 3 percent. Conversely, the Pharma and Healthcare indices managed to rise, closing at 0.9 percent and 0.5 percent respectively.

The market saw both major gainers and losers within the Nifty 50 basket. Top losers included Infosys, Wipro, TCS, Adani Enterprises, and JSW Steel. The strongest performers among the top gaining stocks were Cipla, Asian Paints, Dr Reddy's Laboratories, Maruti Suzuki, and Sun Pharmaceutical Industries.

Expert Analysis: Caution Reigns Amid Global Cues​

Market sentiment was described as weakened following early gains that proved unsustainable amid negative global cues and prevailing caution. Vinod Nair, Head of Research at Geojit Investments, noted that profit booking intensified the downside pressure after a recent rally, resulting in broad-based weakness across several key sectors.

Although stable crude prices and easing geopolitical tensions provided some support to the market, investors maintained a cautious stance. Mr Nair added that market participants are closely focused on the progress of the monsoon and ongoing US-India trade discussions as critical factors moving forward.