DIIs Join FIIs in Selling Spree: ₹1300 Crore Shares Sold, STT Hike to Blame?

• Domestic Institutional Investors (DIIs) were net sellers for two consecutive days, offloading shares worth ₹1300 crore.
• This marks the first time since June 27, 2025, that DIIs have been net sellers for two consecutive sessions.
• The selling pressure emerged after the government proposed an increase in Securities Transaction Tax (STT) on equity derivatives.
• The STT hike on equity futures from 0.02% to 0.05% led to sharp market fluctuations, with Nifty 50 falling 2%.
• Market experts suggest the STT increase aims to curb speculation and encourage long-term investment, potentially generating ₹15,000 crore in additional revenue.

Why It Matters: DIIs turn net sellers for first time in years, raising concerns amid proposed STT hike on derivatives.