DIIs infuse ₹18,520 crore in a week as FIIs pull out ₹13,580 crore
Synopsis
Even as FIIs pulled out ₹13,580 crore and the Nifty shed 2.2% in a single week, domestic institutional investors quietly absorbed the blow — and then some. With DIIs infusing ₹39,920 crore in May alone against FII sales of ₹24,660 crore, India's homegrown capital has become the market's most reliable shock absorber.
Key Takeaways
DIIs made net purchases of ₹18,520 crore during the week ended 16 May .
FIIs were net sellers to the tune of ₹13,580 crore for the week, with early-week outflows of ₹15,100 crore partially offset by late-week inflows of ₹1,520 crore .
In May so far, FIIs have sold ₹24,660 crore while DIIs have injected ₹39,920 crore .
Nifty 50 fell 2.2% or 532 points to 23,643.5 ; Sensex dropped 2.7% or over 2,000 points to 75,238 .
Key risk factors: rising crude oil prices, a weakening rupee, West Asia tensions, and US-China diplomatic uncertainty.
Domestic institutional investors (DIIs) pumped in net purchases worth ₹18,520 crore into Indian equity markets during the week ended 16 May, providing a critical buffer even as foreign institutional investors (FIIs) remained net sellers amid elevated volatility and persistent global headwinds, according to provisional exchange data.
Weekly Flow Breakdown
FIIs offloaded equities worth ₹13,580 crore on a net basis over the week. The selling was concentrated in the first three trading sessions, with cumulative outflows touching nearly ₹15,100 crore. Foreign investors did turn net buyers in the final two sessions, recording modest inflows of ₹1,520 crore — insufficient to offset earlier exits.
DIIs, by contrast, remained net buyers in four out of five sessions. They turned net sellers only on Friday, with outflows of ₹1,960 crore, before closing the week firmly in positive territory overall.
May Tally: DIIs Outpace FII Selling
For the month of May so far, the divergence is stark. FIIs have sold equities worth ₹24,660 crore, while DIIs have injected ₹39,920 crore — effectively absorbing the foreign outflow and then some. This sustained domestic participation has been a key structural support for Indian markets during periods of global risk aversion.
What Spooked Markets This Week
Analysts attributed the week's heightened volatility to a confluence of factors: rising crude oil prices, a weakening rupee, ongoing geopolitical tensions in West Asia, and uncertainty surrounding high-stakes US-China diplomatic talks in Beijing. The Nifty 50 started the week on a weak note, touching an intra-week low of 23,263 during Wednesday's session. Although the benchmark staged a sharp rebound on Thursday, it failed to sustain momentum.
For the week, the Nifty 50 fell 2.2 per cent or 532 points to settle at 23,643.5, while the Sensex declined 2.7 per cent — shedding over 2,000 points — to close at 75,238 compared to the previous Friday's close.
What Analysts Are Watching
Market experts noted that institutional flows are likely to remain sensitive to developments around US-Iran tensions, crude oil price movements, and the ongoing quarterly earnings season. A sustained reversal in FII sentiment would require clarity on global macro risks — particularly the trajectory of US-China trade diplomacy and oil supply dynamics. Until then, DIIs are expected to remain the primary stabilising force in domestic markets.
Point of View
Largely channelled through SIPs and insurance mandates, has repeatedly cushioned markets that foreign money has abandoned. But this dynamic has a limit: if FII outflows persist and retail sentiment cracks, the DII buffer could thin precisely when it is needed most. The Nifty's inability to hold Thursday's rebound — despite positive global cues — signals that domestic buying alone cannot manufacture a durable rally. The real test will come when crude, the rupee, and geopolitical risk all move adversely at once.
NationPress
12 Aug 2026
Frequently Asked Questions
How much did DIIs invest in Indian equities this week?
Domestic institutional investors made net purchases of ₹18,520 crore during the week ended 16 May, remaining net buyers in four of the five trading sessions. Their buying offset the bulk of FII outflows recorded over the same period.
Why are FIIs selling Indian equities?
FIIs have been net sellers due to a combination of elevated global uncertainty — including rising crude oil prices, a weakening rupee, geopolitical tensions in West Asia, and ongoing US-China diplomatic talks in Beijing. These factors have dampened risk appetite among foreign investors.
How much have FIIs sold in May 2025 so far?
FIIs have sold equities worth ₹24,660 crore in May so far, while DIIs have countered with inflows of ₹39,920 crore, providing a net positive cushion for domestic markets.
How did the Nifty and Sensex perform this week?
The Nifty 50 fell 2.2% or 532 points to close at 23,643.5, touching an intra-week low of 23,263 on Wednesday. The Sensex declined 2.7% — shedding over 2,000 points — to end at 75,238 compared to the previous week's close.
What should investors watch in the coming week?
Analysts say institutional flows will remain sensitive to US-Iran tensions, crude oil price movements, and quarterly earnings results. Clarity on US-China trade diplomacy is also seen as a key variable for FII sentiment.
