New Delhi: Foreign institutional investors (FIIs) sold Indian equities worth Rs 30,294 crore this week, extending their selling streak to eight weeks. Domestic institutional investors (DIIs) countered the outflows with net purchases of Rs 30,313 crore, helping cushion markets and support Friday’s recovery, analysts said.
Domestic purchases exceeded foreign selling by Rs 19 crore, highlighting the support from local institutions amid overseas selling.
Domestic Buyers Hold Ground
So far this month, FIIs have sold a net Rs 39,779 crore, while DIIs have bought Rs 40,355 crore, according to Pabitro Mukherjee, Deputy Vice President, Research, at Bajaj Broking.
The Nifty was down 0.44 per cent from its September-end close of 22,620.45, he said.
Over the past eight weeks, foreign institutions remained sellers while domestic institutions consistently bought equities. The Nifty declined 7.57 per cent during this period, falling from 24,366.00 to 22,520.45, with domestic buying helping contain the damage.
Financial Services Lead Outflows
A PL Capital study showed foreign portfolio investors (FPIs) withdrew Rs 35,861 crore from Indian equities in September 2026, reversing August’s net inflows of Rs 29,628 crore.
The selling spread across financial services, energy, automobiles and metals, reflecting pressure across sectors.
Financial services recorded the largest outflow at Rs 13,147 crore, compared with inflows of Rs 10,494 crore in August. September’s withdrawals were nearly six times the sector’s long-term average monthly outflow of Rs 2,237 crore.
Select Sectors Attract Capital
Consumer services attracted Rs 2,333 crore, marking its fourth consecutive month of inflows. Services received Rs 2,302 crore, followed by healthcare at Rs 2,117 crore and construction at Rs 1,311 crore.
Despite these pockets of buying, cumulative sectoral FPI outflows for January–September 2026 stood at around Rs 2.60 lakh crore.
Also read: NSE Shares Slide Below IPO Price, Rs 41,000 Crore In Investor Wealth Erased
Mannat Gandhi, research analyst, Quant, at PL Capital, said foreign flows into consumer services, services and healthcare remained well above long-term averages.
Quarterly holdings also indicated a gradual shift in FII exposure away from banks and information technology towards electricals and non-ferrous metals, she said.
Analysts expect continued foreign selling and global headwinds to keep markets volatile. However, sustained domestic institutional buying is expected to provide support and limit further downside, even as overseas investors remain selective in their sector choices.
