FII in 2026 Rs. Sells over 2 lakh crore worth of Indian equities. What’s next?

Foreign Institutional Investors (FIIs) will invest Rs. 2.06 lakh crore offloaded domestic equities, remaining net sellers for the third consecutive month to date. So far this month they have collected Rs. 14,231 crore shares have been sold.

On Friday, FIIs invested Rs. 4,110.60 crore sold domestic shares while domestic institutional investors (DIIs) sold Rs. 6,748.13 crore were net buyers.

Despite DIIs throwing around their weight, the benchmark indices ended with a sharp cut on Friday, posting their second straight decline amid a significant sell-off in financial stocks. While the Nifty closed down 150.50 points or 0.62% at 24,176.15, the BSE Sensex shed 516.33 points or 0.66% at 77,328.19.

Commenting on the current trends, Trustline Holdings CEO N. Arunagiri said domestic markets continued to sell FIIs despite selling around $50 billion since September 2024, with inflows to South Korea of ​​around $4 billion and Taiwan around $5.5 billion.

“India is still not getting its fair share of emerging market allocations. This clearly shows that FIIs currently do not find India attractive from an allocation perspective. As a result, large caps have relatively underperformed, while strong domestic flows continue to support the SMID segment. Until FIIs meaningfully increase India allocations, equity allocations are likely to be driven by market earnings. Instead of a momentum rally led by large caps visibility and bottom-up opportunities,” said Arunagiri.

Outlook

Institutional activity is expected to be driven largely by global developments, Bajaj Broking said. The progress or deterioration of US-Iran talks will be a key factor to monitor, he said, outlining the potential impact on geopolitical stability and crude oil price volatility.

FII in 2026

March was the worst month of the year due to the war-induced sell-off, with Rs. An exodus of 1,17,775 crores was observed. April Rs. 60,847 crore was not kind either with an outflow. Foreign investors turned out to be net buyers in February and domestic markets have so far added Rs. 22,615 crore shares were bought. In January, they raised Rs. 35,962 crore worth of shares were sold.

In 2025, the trend of FII buying remained ambiguous, but the overall trend was bearish. They have taken Rs. 1,66,286 crore as trade deals weighed on delay and premium valuation sentiment.

Also Read: FII ownership at 14-year low at 14.7%; DII cushions Indian markets with 18.9% gain: Report

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