FIIs had turned net buyers on Wednesday, purchasing equities worth ₹1,617.45 crore. On Tuesday, they were net sellers of ₹3,809.99 crore.
Domestic institutional investors (DIIs), meanwhile, continued to provide buying support, remaining net buyers of ₹4,301.18 crore in equities on Thursday on a provisional basis. DIIs had recorded net purchases of ₹2,341.46 crore on Wednesday.
The selling came as the market saw an across-the-board decline, with the Nifty slipping below 23,100 and closing at its lowest level in the last five months. Weak global cues and the Insurance Regulatory and Development Authority of India’s (IRDAI) proposals for the insurance sector weighed on market sentiment.
As many as 48 of the 50 Nifty stocks ended in the red, with stocks falling as much as 6%. The Sensex fell 1,248 points to 73,581, while the Nifty declined 384 points to 23,063.
The Nifty Bank slipped 1,110 points to 55,439, while the Midcap index fell 1,406 points to 60,990.
Financial and insurance stocks together erased ₹1.25 lakh crore in market capitalisation. Insurance stocks saw a sharp fall following IRDAI’s paper, with PB Fintech declining 35%.
PB Fintech recorded its biggest single-day fall, erasing more than ₹30,000 crore in market capitalisation. Bajaj Finance, HDFC Life, Bajaj Finserv and Axis Bank were among the top Nifty losers, falling 4-6%.
Banks with higher bancassurance contribution also declined, with IndusInd Bank, IDFC First Bank and AU Small Finance Bank among the top losers.
Also Read: Stock Market Crash: Five reasons why Nifty fell 400 points, Sensex tanked 1,200 points on Thursday