On Friday, FIIs sold domestic shares to the tune of Rs 8,827.87 crore while domestic institutional investors (DIIs) were net buyers at Rs 4,700.71 crore.
The massive selling ensured domestic frontline indices ended with sharp cuts. The biggest spoilsport was IT, which fell over 5% at the index level. Pharma, health and energy socks were other big losers. While the 50-stock Nifty fell 275.10 points or 1.14% to finish at 23,897.95, Sensex declined 999.79 points or 1.29% to settle at 76,664.21.
FIIs continue to offload Indian equities with the month-to-date selling trend continuing for the 10th consecutive months, said Bajaj Broking in a note as geo-politics dominate institutional flows. Going ahead, the institutional activity is expected to be driven mainly by global news flows, with developments in US–Iran negotiations remaining a key monitorable, a brokerage note said.
“US FOMC and Bank of Japan rate decisions followed by central bank commentary are also scheduled for next week which will also have an impact on the global equity market and institutional activity,” it added.
The rate setting committee of the US Federal Reserve will meet on April 28 & 29 to mull on the policy moves in light of the ongoing US-Iran war. The policy outcomes will be declared on Wednesday, April 29.FIIs have remained net sellers in Indian markets despite improving global cues, with over $45 billion pulled out since September 2024 and another $5 billion sold in April 2026 alone, even as flows moved to markets like Korea and Taiwan, N. ArunaGiri, CEO, TrustLine Holdings said, adding the divergence highlights India’s reduced appeal in global allocation strategies, as its MSCI weight has dropped sharply.“FIIs are predominantly large-cap, top-down investors,” and their participation hinges on clear sectoral leadership—something currently lacking with IT facing derating and private banks showing muted growth, ArunaGiri explained.
He adds that “in the absence of a clear index driver, India’s relative attractiveness diminishes,” especially in a market expected to remain sideways and stock-specific, which typically favours domestic investors over global flows. From an FII standpoint, a meaningful return will likely depend on two key triggers – “a clear earnings acceleration cycle” and “supportive currency trends” – he added.
FIIs in 2026
War-induced sell-off in March made it the worst month this year, witnessing an exodus worth Rs 1,17,775 crore. Foreign investors turned net buyers in February, buying shares worth Rs 22,615 crore in the domestic markets so far. In January, they sold Rs 35,962 crore worth of shares.
In 2025, the FIIs buying trends remained patchy, but the overall trend was bearish. They took Rs 1,66,286 crore from Indian markets as trade deal delay and premium valuations weighed on the sentiments.
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