Domestic Institutional Investors (DII) were net sellers in the stock market for the second consecutive day on Sunday. DII sold shares worth ₹683 crore in Sunday’s trade. Earlier on Friday also he had sold Rs 601 crore. In this way, the total selling of DII in two days reached about ₹ 1,300 crore.
Earlier last year, DII had bought shares worth a record ₹8 lakh crore. He had been handling the selling of foreign investors for a long time. But now their selling has also increased the concern of investors.
Such a record made for the first time after June 2025
This selloff on Sunday is considered important because for the first time after June 27, 2025, DIIs have become net sellers in two consecutive trading sessions. In contrast, foreign investors have bought shares worth about ₹1,600 crore in the last two trading sessions.
According to exchange data, the average daily purchases of DIIs in the last three months has been around ₹3,800 crore. This makes the current selloff look even more shocking.
What was the reason behind the sale?
This pressure has been seen in the market after the government’s proposal to increase the tax on equity derivatives. This decision weakened the market sentiment.
Generally, DIIs, along with retail investors and high-net-worth individuals (HNIs), have been balancing the selling by foreign portfolio investors (FPIs). But this time he also appeared alert.
Sharp fluctuations in the market due to STT increase
The Budget proposed to increase the Securities Transaction Tax (STT) on equity futures from 0.02% to 0.05%. After this, sharp fluctuations were seen in the market. Nifty 50 fell by about 2%, which is considered to be the biggest fall on the budget day after 2020.
Under this pressure BSE Ltd. Shares fell nearly 8%. At the same time, capital market related companies like Angel One and Nuvama Wealth Management recorded a decline of 7% to 9%.
What is the government’s motive behind increasing STT?
Market experts say that this step has been taken to control the rapidly increasing betting. In recent years, India has become the world’s largest derivatives market in terms of contracts due to heavy participation from retail investors.
According to Vishal Kampani, Vice Chairman and Managing Director, JM Financial, the limited increase in STT on futures and options is aimed at preventing excessive speculation, making the market more stable and promoting participation by long-term retail and institutional investors.
How much additional revenue will the government get?
According to a Finance Ministry official, the government is expected to get additional revenue of about ₹15,000 crore annually from the increased STT on equity futures and options.
Buying and selling situation of investors in 2026
So far in 2026, domestic institutional investors have bought shares worth about ₹68,538 crore. These include mutual funds and insurance companies. In comparison, foreign portfolio investors have sold about ₹30,000 crore so far this year.
It is worth noting that in 2025, foreign investors had already sold shares worth about ₹ 1.7 lakh crore. So despite the recent selloff, DIIs still remain a strong support for the market in the long run.
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