Rs 43,000 crore selloff by promoters! Insider exits flash warning sign for Nifty bulls
Just as
Nifty
notched a hat-trick of monthly gains with a 12% surge through May, a parallel trend has emerged: India Inc's promoters are cashing out. In what could be viewed as a potential red flag for the ongoing market rally to accelerate further, promoters and other large shareholders have offloaded shares worth a staggering Rs 43,400 crore in May alone.
This comes at a time when foreign institutional investors (FIIs) and domestic institutional investors (DIIs) have together pumped in nearly Rs 80,000 crore into Indian equities last month, alongside steady retail and
HNI
buying. The sell-off, led by high-profile block deals, is raising eyebrows about insider sentiment, especially with valuations running high.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Villa For Sale in Dubai Might Surprise You
Villas in Dubai | Search ads
Learn More
Undo
Topping the list is
Rakesh Gangwal
, co-founder of
IndiGo
, who sold shares worth over Rs 11,560 crore on May 27 in a fresh round of stake trimming in
InterGlobe Aviation
. A day later,
British American Tobacco
(BAT) offloaded a 2.5% stake in
ITC
through its subsidiary for around Rs 12,900 crore, one of the largest single-day exits in recent memory, shows data compiled from Prime Database.
Earlier in the month, Singtel sold
Bharti Airtel
shares worth Rs 12,880 crore on May 16. Meanwhile, General Atlantic Singapore Fund exited
KFin Technologies
in a Rs 1,790 crore deal, and Sajjan Jindal Family Trust pared its stake in
JSW Infrastructure
for Rs 1,210 crore.
Live Events
Prime Database shows promoter selling activity also surfacing in smaller firms like Gravita India, PG Electroplast, TD Power, Paras Defence, and Ami Organics, fanning concerns among market watchers.
Block deals continued this week as well with action seen in Zinka Logistics, Aptus Value Housing Finance,
Yes Bank
and Ola Electric on Tuesday. PE investor True North and others sold over $175 million worth of Niva Bupa Health Insurance shares on Monday.
Siddharth Khemka of Motilal Oswal Financial Services pointed to liquidity dynamics behind the move. 'If FIIs want to buy, and DIIs and retail don't want to sell, then who provides supply? The promoters are stepping in. They want liquidity – they can't call up individual investors to offload 3% blocks. When institutional money is present, that's when promoter selling comes into play,' he said, adding that block deals and IPOs are likely to surge again as markets stabilize.
Also read |
India crowned top destination for stock compounders, says BofA; lists 9 structural themes
Anshul Saigal, founder of Saigal Capital, cautioned against over-interpreting promoter sales. 'There can be multiple reasons to sell – like the Whirlpool case where the parent is in distress. I pay less attention to promoter sales and more to purchases. There's only one reason to buy – the belief that the stock will go up.'
However, Sandip Sabharwal, market expert, flagged a possible contradiction. 'If companies are guiding for strong growth but promoters are dumping large volumes at high valuations, that's a dichotomy. It raises questions. I'm more concerned about small and midcap promoter sales than the larger ones like InterGlobe or BAT's sale in ITC. But even large-cap exits pull liquidity from the system and cap market upside.'
While the promoter exit wave may be driven by individual circumstances – ranging from global financial pressures to portfolio rebalancing – the timing is unmistakable. As the market roars ahead, insiders are cashing in. Whether it's a canary in the coal mine or just business as usual remains to be seen, but for now,
Nifty bulls
may want to tread with a touch more caution.
Also read |
Rs 15 lakh crore in net profit! India Inc's top 500 cos break records in FY25 despite downgrades
(
Disclaimer
: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
40 minutes ago
- Time of India
Bengaluru Metro's loss is BMTC' gain on NICE Road
Bengaluru: With the long-delayed Yellow Line of Namma Metro to Electronics City still not open to public, thousands of commuters are turning to BMTC's NICE Road express bus services, which have seen a sharp rise in ridership and earnings in recent months. Launched in Dec 2023, BMTC services along NICE Road corridor began with 62,000 passengers. Today, they attract more than 4 lakh commuters each month. The corporation is now operating 53 buses across 17 routes on NICE Road, with daily ridership exceeding 13,000 passengers. Revenue has also seen a notable jump, with earnings per kilometre doubling in just over a year to Rs 58.8 from Rs 26.1. Among the services gaining traction is the recently introduced non-stop express route covering 48km between Madavara and Electronics City. BMTC chief traffic manager (operations) GT Prabhakar Reddy said the services have outpaced other major corridors within city limits in terms of popularity. "...Responding to this demand, we've added more routes and buses. We've also introduced a direct link from Tavarekere to Electronics City and are planning to roll out 10 AC buses on this route," he said. NICE Road buses now connect key IT hubs via routes originating in Madavara, Vijayanagar TTMC, Bidadi, Kengeri, Banashankari, Basaveshwara Nagar, and other residential areas. Commuters cite reduced travel time and avoidance of city-centre congestion as key reasons for choosing NICE corridor. A one-way ticket from Madavara to Electronics City costs Rs 76, including a Rs 30 toll charge levied by NICE. Although BMTC had earlier requested the toll be reduced or waived for public transport buses, the proposal did not receive any favourable response from NICE authorities. Several passengers also use Metro to reach Madavara before switching to buses to complete their journey to Electronics City. This seamless multimodal shift has become increasingly necessary, as BMRCL continues to miss deadlines for the Yellow Line, connecting RV Road and Bommasandra. Despite spending nearly Rs 7,000 crore on the 19-km elevated stretch, the Metro line — initially expected to launch in June with three trains — is yet to receive third-party safety clearance for its signalling system. With no official launch date in sight and repeated delays, public confidence in BMRCL's timeline continues to erode. Meanwhile, BMTC's efficient operations along NICE Road are proving to be a lifeline for daily commuters to the city's IT corridor. Box Rising demand NICE Road bus service launches in Dec 2023 Starts with 62,000 passengers Currently, route caters to 4 lakh commuters a month BMTC now operates 53 buses across 17 routes on NICE Road Daily ridership exceeds 13,000 passengers Earnings per km doubles in over a year from Rs 26.1 to Rs 58.8 Recently introduced non-stop express route, covering 48km between Madavara and Electronics City, gains traction
Time of India
40 minutes ago
- Time of India
Delhi raises a toast to Grand Duke Henri of Luxembourg
Ambassador of Luxembourg Peggy Frantzen with chief guest Tanmaya Lal, Secretary (West), MEA A gathering of diplomats and friends of the Embassy of Luxembourg came together at The Imperial, New Delhi, to celebrate the National Day of Luxembourg. The evening was filled with stimulating conversations and camaraderie over fine food and drinks. Celebrated to mark the official birthday of the Grand Duke of Luxembourg, the National Day reception began on a ceremonial note with the playing of the national anthems of both nations. Relationship of steel In her welcome address, Ambassador Peggy Frantzen said, "The National Day celebrations of 2025 are special, as it is the last one under the current head of state, Grand Duke Henri. This year also marks the completion of his 25 years of reign." Adding, she said, "I hope more people get to know about the friendly and amicable long-time relationship between India and Luxembourg. Cultural ties are evolving, with many artists travelling to showcase their talents, thereby strengthening people-to-people links. Our cooperation in the steel sector started over a 100 years ago and remains an important link and strong base of the India-Luxembourg relationship." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với sàn môi giới tin cậy IC Markets Tìm hiểu thêm Undo Ambassador of European Union Hervé Delphin and Ambassador of Ireland Kevin Kelly Tanmaya Lal, Secretary (West), Ministry of External Affairs, who was the chief guest, said, "We send our warmest greetings to His Royal Highness and the people of Luxembourg. From the steel sector, which has been a core strength for a long time, our relationship with Luxembourg has expanded in investment and manufacturing in the fields of IT, fintech, and space. Culturally, with a large population of Indians in Luxembourg, many Indian festivals are celebrated there enthusiastically. " German Ambassador Philipp Ackermann and Swiss Ambassador Maya Tissafi Both the Ambassador and the chief guest remembered the late modernist artist Amarnath Sehgal, who played a pivotal role in cementing the artistic linkages and "promoting cultural understanding" between the two countries. VN Dalmia with the Ambassador of Japan ONO Keiichi As guests mingled, conversations ranged from art and culture to outer space, with many talking about the traditional savoury pie, Rieslingspaschtéit, that was served to the guests. Traditional rieslingspaschtéit and one of Amarnath Sehgal's sculptors On a lighter note, the Ambassador said that she is thankful that this summer in Delhi was a bearable one. "Compared to last summer, it was better this year. I am glad I can go out more and enjoy my walks in Lodhi Garden." Ukrainian Ambassador Dr. Oleksandr Polishchuk and Ambassador of Estonia Marje Luup
Time of India
40 minutes ago
- Time of India
HC junks Greater Noida Industrial Development Authority order to cancel land for project
Noida: The Allahabad high court has quashed a 2022 decision by Greater Noida Industrial Development Authority (GNIDA) to cancel land allotted to Royal Golf Link City Projects Pvt Ltd, calling the move "arbitrary and illegal". The court struck down restoration charges, time extension penalties, and penal interest imposed by GNIDA, asking the Authority to restore the plot and revalidate the project map. The court was hearing a petition filed by Royal Golf Link in April, challenging a UP govt order that restored the land allotment but levied several charges. On May 27, Justice Pankaj Bhatia of the Lucknow bench of the HC struck down the state govt's order, nullified the penalties, and granted a three-year extension to the developer to complete the project without extra cost. The court said GNIDA had no valid reason to deny relief to Royal Golf Link when similar reprieve was given to other developers. "Thus, for all the reasons above, the impugned order insofar as it denies the benefit of restoration charges, the extension of time without payment of charges, non-charge of penalty interest and zero period benefit is wholly unjustified and the order to that effect is bad in law. Thus, the writ petition is disposed of with direction to the respondent no 3 (GNIDA) to recalculate the dues as indicated in the cancellation order dated July 20, 2022 without charging the restoration charges, grant the benefit of time extension without any charges and calculate the interest without charging any penal interest at the rate of SBI's MCLR + 1," the court order read. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Tìm hiểu thêm Undo The case revolves around a 36.4-hectare land parcel allotted in 2014-15 for developing a recreational park in Sector 27. Initially allocated to a consortium led by Ultra Homes Construction (part of the Amrapali Group), the project was later transferred to Royal Golf Link City Projects, a special purpose vehicle. The total land premium was Rs 298 crore, of which Rs 59.6 crore was paid when the lease was signed. The dispute emerged when GNIDA failed to provide full physical possession of land, with 13,517sqm under encroachment, including a pond and connecting pathway. The situation was further complicated when the then DM asked the developer to leave this area for public access, necessitating a project redesign. The Authority also recorded the presence of farmers on a part of the land and deferred the next premium instalment by six months. The Amrapali case in the Supreme Court further complicated the progress, as the company declared an investment in Royal Golf Link in 2018. The SC ruled that leaseholder dues should be calculated at SBI's MCLR + 1. Royal Golf Link sought recalculation of dues and an 18-month zero-period benefit from the start govt, saying it hadn't received full possession. Instead, GNIDA cancelled the lease on July 20, 2022, citing unsettled dues of Rs 360 crore. The developer moved HC, claiming that GNIDA ignored the SC ruling on interest. Homebuyers also intervened, arguing that the additional charges would be passed on to them. They also claimed that most of the project was ready, but was stuck due to GNIDA's disputes. Royal Golf Link insisted that the restoration fees were unjust since the cancellation was ruled illegal. The court accepted the developer's request for zero-period relief, waiving penalty interest and dues for the Covid pandemic period and from July 20, 2022, to June 12, 2024. The court ruled that the developer must pay 25% of the revised amount — after adjusting Rs 5 crore already paid — within 60 days of receiving the demand. The project Royal Golf Link is building is known as 'The Hemisphere', which includes 1,300 flats, villas, and shops. The developer has claimed to have offered fit-out possession to around 900 buyers.
