Why are Indian markets falling even when US is up? Promoters are sucking out all the liquidity

General
1

Okay so I’ve been watching the market and something weird is happening. US markets are green, Nasdaq is flying… but Nifty and Sensex are like :low_battery:. So I looked deeper.

Guess what I found?

Promoters are dumping their shares like it’s a clearance sale.

Just this week:

  • IndiGo (InterGlobe Aviation):
    Gangwal sold ₹11,564 crore worth of shares.
    That’s almost 6% stake… gone.
  • ITC:
    BAT sold ₹12,926 crore worth.
    And they still hold more… :eyes:
  • PG Electroplast:
    Promoters sold ₹1,177 crore worth.
    5.62% stake dumped.

All through block deals which means big chunks being sold to institutions, taking out thousands of crores from the market in one shot.

What happens when this much supply comes in?
Stock prices dip. Sentiment weakens. Liquidity dries up.

Even if the US market is up, our market bleeds because FIIs and big boys are busy absorbing these block deals.

So yeah, foreign investors may be “bullish”, but promoters are cashing out quietly.

Feels like markets are being drained from the inside.

2

Yes, and BAT kind of cheated the public, they had maintained last time that they would like to keep a shareholding of more than 25% in ITC for key voting rights. Now, they have sold this additional 2% and their shareholding is around 23%. With this voting logic gone, who knows they will keep selling 2% every now and then, keeping ITC price in check.