IT Bloodbath: Nifty Snaps 5-Day Rally as FIIs and DIIs Turn Net Sellers**

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Market Snapshot

Dalal Street witnessed a sharp correction on Friday, with the benchmark indices retreating from near-record highs. The NSE Nifty 50 tumbled 154.90 points, or 0.64%, to settle at 24,013.10, while the BSE Sensex plunged 607.08 points, or 0.78%, to close at 76,802.90. The decline was largely driven by the Nifty IT index, which crashed 3.65% following dismal guidance from global peer Accenture. Despite the large-cap sell-off, the broader markets showed resilience, with the Nifty Midcap 100 and Smallcap 100 indices gaining 0.22% and 0.42%, respectively.

Institutional Flows: Cash Market

According to provisional data from the National Stock Exchange (NSE), institutional activity turned negative on June 19, 2026, marking a reversal from the buying seen earlier in the week.

• Foreign Institutional Investors (FIIs) were net sellers in the cash segment, offloading equities worth ₹1,025.20 crore.
• Domestic Institutional Investors (DIIs) also turned net sellers, exiting positions worth ₹1,159.64 crore.
• The cumulative institutional outflow for the session stood at ₹2,184.84 crore, exerting significant downward pressure on heavyweight stocks.

Derivatives Market Activity

Volatility surged as the "fear gauge," India VIX, spiked by approximately 5% to reach 13.33, indicating heightened anxiety among traders.

• In the Index Futures segment, FIIs showed mixed sentiment, with marginal long unwinding in Nifty futures while maintaining some hedges in Bank Nifty.
• The IT sector derivatives saw a massive spike in put option buying as heavyweights like Infosys and TCS witnessed their sharpest single-day declines in months.
• Bank Nifty futures ended the day at 57,685.75, down 0.48%, as financial stocks also faced moderate profit-taking.

Key Drivers and Outlook

The market's reversal was triggered by a "perfect storm" of domestic and global factors that forced investors to lock in gains after a 5% rally over the previous week.

• Accenture Guidance Cut: The primary catalyst was global IT major Accenture lowering its revenue growth forecast for FY27, which sparked fears of a prolonged slowdown in enterprise tech spending. This led to a 6.69% crash in Infosys and a 3.53% drop in TCS.
• Geopolitical Hurdles: Sentiment was further dented by news that U.S. Vice-President J.D. Vance postponed a critical visit to Switzerland for peace talks with Iranian negotiators, raising concerns over the stability of the recently signed U.S.-Iran peace memorandum.
• Reliance AGM Highlights: Investors closely monitored the 49th Annual General Meeting of Reliance Industries. While Chairman Mukesh Ambani announced the filing of IPO papers for Jio Platforms and a target of $150 billion in exports by 2032, the stock ended nearly 1% lower due to broader market profit-taking.
• Outlook: Market participants expect volatility to remain high as the monthly expiry approaches. Immediate support for Nifty is seen at the 23,900 level, while 24,150 acts as a stiff resistance.

TAGS: FII, DII, Stock Market, Institutional Investors, Nifty, Sensex

Tags: ** FII DII Stock Market Institutional Investors Nifty Sensex