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Retail investors book profits as institutional buyers stage a comeback in the marketBetween April 11 and April 29, retail investors offloaded shares worth over ₹20,000 crore, even as institutional investors — both domestic and foreign —purchased equities totalling ₹38,400 crore, according to NSE data.By Yoosef K   May 2, 2025, 11:37:27 PM IST (Published)2 Min ReadRetail investors, who collectively own about 8% of India’s equity market, have emerged as net sellers even as both foreign and domestic institutional investors stepped up their buying in recent weeks.

Between April 11 and April 29, retail investors offloaded shares worth over ₹20,000 crore, even as institutional investors — both domestic and foreign —purchased equities totalling ₹38,400 crore, according to NSE data.

Data further reveals that April 28 marked the biggest single-day selling by retail investors during the month, with shares worth nearly ₹5,400 crore sold. Over just three trading days — from April 25 to April 29 — retail selling totalled ₹9,500 crore. In contrast, FPIs purchased ₹9,900 crore worth of shares and DIIs added another ₹7,730 crore during the same period.

The retail category comprises Hindu Undivided Families (HUFs), individuals, proprietorships, NRIs, and partnership firms, including LLPs.

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Interestingly, even as retail investors reduced their holdings, indices with higher retail participation outperformed. The Nifty50 rose 8.6% between April 11 and April 29, while the Nifty Midcap and SmallCap indices both jumped 10%.

Institutional sentiment remains strong. Foreign investors, who recently turned net buyers after months of selling, and domestic institutions, comprising mutual funds, insurers, and banks, have consistently bought since August 2023.

Market watchers attribute the FPI comeback in April to a weakening US dollar and hopes of an early trade deal with the U.S. This comes after heavy outflows of ₹73,000 crore in January and ₹41,200 crore in February this year.

Following a 6.4% dip from its March highs, the Nifty50 has rallied nearly 10%. Karthik Kumar, Fund Manager at Axis Mutual Fund, expects Indian markets to remain range-bound in the near term.

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He highlights supportive factors such as softening oil prices, a weaker dollar, and FPIs buying, but cautions about uncertainties around trade policy and muted earnings growth. "Markets can digest good or bad news, but they struggle with uncertainty," Kumar said.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!Tagsdomestic institutional investorsNifty midcapNifty50retail investors