AI Analysis: Sectoral performance revealed a clear defensive shift. Information Technology (IT) emerged as the strongest performer, gaining 0.73%, followed by MIDSMALL IT & TELECOM and MIDSMALL FINANCIAL SERVICES. This indicates a flight to quality or sectors less susceptible to domestic economic headwinds. Conversely, a broad range of sectors experienced significant declines, with CHEMICALS (-1.03%), Media (-0.91%), and MIDSMALL HEALTHCARE (-0.88%) leading the laggards. Other consumption-oriented and cyclical sectors like FMCG, Cement, Auto, and Oil & Gas also showed considerable weakness, signaling broad-based risk aversion. Financials presented a mixed picture, with Nifty Bank down 0.45% and Private Banks declining, despite some positive movement in smaller financial segments.

AI Analysis: Institutional activity showed a notable divergence between foreign and domestic flows amidst the market correction. Domestic Institutional Investors (DIIs) were strong net buyers, accumulating assets worth 3973.72 Cr, suggesting conviction in buying the dip. Foreign Institutional Investors (FIIs/FPIs), while net buyers, exhibited only a modest positive flow of 407.99 Cr. This indicates that while foreign capital is not exiting, it is not aggressively entering either. The strong DII buying likely provided some cushion against a steeper market fall, acting as a crucial internal support mechanism for Indian equities.