New Delhi, July 9 -- Over the past few months, the Indian stock market has frequently witnessed large stake sell-offs by promoters and private equity firms, often right at the Opening Bell-triggering sharp price movements in the affected stocks.

The scale of these sell-offs surged significantly in May and June, following a sharp rerating of the Indian market. Insider and promoter selling reached $11 billion in just the past month, bringing the total to $30 billion in the first half of the calendar year.

Such stake sales by promoters are generally viewed as a red flag by investors as it signals lack of confidence in the company's future prospects by those who know the best.

Meanwhile, this selling has coincided with FPI outflows of $11 ...