Foreign institutional investors extended their selling streak into a fifth straight week in September 2026, offloading Indian equities even as domestic institutional investors kept buying, cushioning benchmark indices from a deeper fall, market data showed.
Foreign Investors Sell for a Fifth Straight Week
FIIs remained net sellers for a fifth consecutive week in September 2026, offloading ₹7,620 crore of Indian equities during the week, according to a BW Businessworld report citing Bajaj Broking research.
DIIs, in contrast, extended their buying streak with net purchases of ₹11,232 crore over the same week, helping the market recover from mid-week lows, the report said.
Month-to-date, FIIs had sold a net ₹7,041 crore in the cash equity segment while DIIs bought ₹36,219 crore, per the same report.
Nifty Down About 3% From Its August Close
The Nifty 50 has fallen roughly 3% from its August-end close of 24,080.4, with seven of the nine trading sessions in September ending lower, the BW Businessworld report said.
Separately, depository data tracking broader foreign portfolio investor (FPI) flows across all asset classes, cited by Inkl’s market analysis, showed cumulative outflows crossing ₹23,000 crore for the month through 19 September 2026 a wider measure than the cash-equity-only FII figures above.
Analysts cited in the reports pointed to elevated Brent crude oil prices, high US bond yields and a probable US Federal Reserve rate move as the main pressure points keeping foreign investors cautious.
Why DIIs Keep Absorbing the Selling
Domestic institutions, largely mutual funds deploying steady SIP inflows, had not missed a single day of net buying since 11 August 2026 as of the report date, a streak spanning 24 sessions.
This sustained domestic support has kept the market from falling further even though FIIs have been net sellers in every week since mid-August, the BW Businessworld report noted.
What This Means for Retail Investors
For someone already invested through equity mutual funds, this FII-DII tug of war is largely playing out on their behalf through their fund’s SIP inflows, rather than something they need to react to personally.
Investors who track index moves directly and want to act on them will still need an active demat account and trading account to buy or sell shares in their own name.
Those who want to watch FII/DII numbers and index levels as they update through the month can do so on an online trading platform rather than relying only on end-of-week roundups.
Stock markets are subject to market risks. This article is for informational purposes only and is not investment advice.
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