Thin Volumes Spell Big Fall for Market as FIIs Keep Selling

Benchmark indices slid over 1% each to 8-month lows, wiping out ₹4.35 lakh crore

- Dipti Sharma

MUMBAI: On a day of low trading volumes, the Indian markets continued their downward spiral for the fifth straight session on Monday. Benchmark indices slid more than 1% each to their respective eight-month lows, wiping out a staggering ₹4.35 lakh crore in investor wealth in a day.

Total turnover on NSE—at ₹71,947.32 crore—was its lowest in nearly four months. Experts say in such situations, it takes less effort to move the market, making price swings more exaggerated.

Average daily turnover (ADT) on the NSE fell to a 15-month low of ₹88,861.90 crore in the month through February 24, while ADT of equity derivatives, based on premium turnover of options, plunged to a 22-month low of ₹1.92 lakh crore.

At the same time, foreign investors continued to pull out funds. On Monday, foreign institutional investors (FIIs) offloaded a net ₹6,286.70 crore, while domestic institutional investors (DIIs) stepped in with net purchases of ₹5,185.66 crore.