Foreign Investors Sell Rs 30,294 Crore in a Week as Domestic Investors Buy Rs 30,313 Crore

October 10, 2026

Mumbai: Foreign institutional investors (FIIs) continued their selling spree in the Indian stock market for the eighth consecutive week, offloading shares worth Rs 30,294 crore during the week ending October 9. However, strong buying by domestic institutional investors (DIIs), who purchased shares worth Rs 30,313 crore, helped absorb the foreign outflows and supported a recovery in Friday’s trading session.

According to exchange data, domestic institutional investors have maintained their buying momentum even as foreign investors continue to withdraw funds from Indian equities.

FII Selling Continues for Eighth Straight Week

On a month-to-date basis, FIIs have sold a net Rs 39,779 crore, while DIIs have recorded net purchases of Rs 40,355 crore. The Nifty stood 0.44 per cent below its September-end closing level of 22,620.45, according to Pabitro Mukherjee, Deputy Vice President-Research at Bajaj Broking.

Over the past eight weeks, foreign investors have remained net sellers, while domestic institutions have consistently bought shares. Their purchases have helped cushion the market against the sustained selling pressure, even as the Nifty declined 7.57 per cent from 24,366.00 to 22,520.45 over the period cited in the data.

Foreign Investors Withdraw Rs 35,861 Crore in September

Foreign portfolio investors (FPIs) withdrew a net Rs 35,861 crore from Indian equities in September 2026, reversing the net inflows of Rs 29,628 crore recorded in August, according to a sector-wise study by PL Capital (Prabhudas Lilladher).

The selling was broad-based, affecting financial services, energy, automobiles and metals. Financial Services recorded the largest outflow at Rs 13,147 crore, compared with inflows of Rs 10,494 crore in August. The September outflow was nearly six times the sector’s long-term average monthly outflow of Rs 2,237 crore.

However, some sectors continued to attract foreign investment. Consumer Services received the highest inflow of Rs 2,333 crore, marking its fourth consecutive month of positive flows. Services attracted Rs 2,302 crore, followed by Healthcare at Rs 2,117 crore and Construction at Rs 1,311 crore.

Sectoral FPI flows remained negative for January to September 2026, with cumulative outflows reaching approximately Rs 2.60 lakh crore.

Foreign Investors Shift Focus Across Sectors

Mannat Gandhi, research analyst-Quant at PL Capital, said foreign investors continued to allocate funds to Consumer Services, Services and Healthcare, where inflows remained well above long-term averages.

She also noted that quarterly shareholding data indicated a gradual shift in foreign institutional investors’ portfolio weightage away from Banks and Information Technology towards sectors such as Electricals and Non-Ferrous Metals.

Analysts expect continued foreign investor selling and global economic headwinds to keep Indian markets volatile. However, sustained buying by domestic institutional investors is expected to help limit further downside pressure.