Domestic investors buy cheap as FIIs sell big over past five months

The stock market is reeling under a bear run since October with market capitalisation falling by about $1 trillion, but domestic institutional investors believe quality stocks are available cheap, and continue to buy, betting for the long-term. Since the September peak, foreign institutional investors (FIIs) have been at the forefront of this sell-off, liquidating stocks worth Rs 3.42 lakh crore since October 2024. This has led to a sharp 15 per cent-plus fall in the key market indices Nifty and Sensex. A record number of investors across small cities and towns who entered the market last year through the mutual…