DIIs infuse ₹33,460 crore as FIIs sell for 15th straight month
Synopsis
Foreign institutional investors have now sold Indian equities for 15 straight months, pulling ₹44,010 crore in September alone — yet domestic institutions have absorbed the blow, pumping in ₹76,030 crore over the same period. With the Nifty down eight weeks running and the RBI policy meeting, GST Council, US Fed minutes, and Q2 earnings all converging in the first week of October, the next few days could prove decisive for market direction.
Key Takeaways
DIIs infused ₹33,460 crore into Indian equities during the week ended 2 October 2026 .
FIIs offloaded ₹34,970 crore in the same week, extending net selling to a 15th consecutive month .
In September , FIIs pulled out ₹44,010 crore ; DIIs countered with ₹76,030 crore in purchases.
Nifty50 closed 3.1% lower at 22,422 on Thursday, logging an eighth straight weekly loss.
Bank Nifty fell 2% ; Nifty Midcap and Nifty Smallcap declined 3.6% and 3.4% respectively.
Upcoming triggers include the RBI MPC meeting (5–7 Oct) , GST Council (7 Oct) , US Fed minutes (7 Oct) , and Q2 FY27 earnings from 8 Oct .
Domestic institutional investors (DIIs) pumped in ₹33,460 crore into Indian equities during the week ended 2 October 2026, partially cushioning the blow from sustained foreign outflows. Foreign institutional investors (FIIs) offloaded shares worth ₹34,970 crore in the same period, according to provisional exchange data, extending their net-selling streak to a 15th consecutive month.
FII Outflows Deepen in September
On a month-to-date basis, FIIs withdrew ₹44,010 crore from Indian markets in September, while DIIs stepped in with investments of ₹76,030 crore during the same period. The sustained divergence between foreign and domestic flows underscores a growing reliance on domestic capital to stabilise equity markets against global headwinds.
Nifty Extends Losing Streak to Eight Weeks
The broader market mood remained under pressure. The Nifty50 fell across all four trading sessions during the week, closing 3.1% lower at 22,422 on Thursday — its eighth consecutive weekly loss. Bank Nifty declined 2%, while Nifty Midcap and Nifty Smallcap indices shed 3.6% and 3.4%, respectively, reflecting broad-based risk aversion across market segments.
What Is Driving the Sell-Off
'Benchmark indices continued to face selling pressure amid a challenging global backdrop, with elevated US bond yields, firm Brent crude prices and sustained FII outflows weighing on sentiment,' said Pabitro Mukherjee, Deputy Vice-President — Research at Bajaj Broking. Mukherjee added that uncertainty over the prospects of a peace deal involving Iran and a depreciating rupee also contributed to investor caution. Elevated crude oil prices have simultaneously raised concerns over domestic inflation and the broader macroeconomic outlook, while higher global bond yields have constrained risk appetite, according to market experts.
Key Events Ahead for Markets
Several high-impact catalysts are lined up in the coming days. The Reserve Bank of India's (RBI) Monetary Policy Committee is scheduled to meet from 5 to 7 October, a session that could signal the central bank's stance on rates amid inflationary pressures. The 57th GST Council meeting is also set for 7 October. On the global front, the US Federal Reserve's minutes from its September meeting are due on the same date. The second-quarter FY27 earnings season is scheduled to begin on 8 October, adding another layer of event risk for investors navigating an already volatile tape.
Point of View
Particularly as US yields offer a credible risk-free alternative. The comfort is that DIIs, flush with SIP inflows, have so far plugged the gap; but ₹33,460 crore of domestic buying barely covering ₹34,970 crore of foreign selling is a thin margin. If Q2 FY27 earnings disappoint and the RBI signals a hold-with-hawkish-bias next week, even that DII buffer could thin further. The eight-week Nifty losing streak is already testing retail investor conviction — the one engine that has kept domestic flows resilient.
NationPress
2 Oct 2026
Frequently Asked Questions
Why are FIIs selling Indian stocks continuously?
FIIs have been net sellers in Indian equities for 15 straight months, driven by elevated US bond yields that make dollar-denominated assets relatively more attractive, firm crude oil prices raising inflation risk, a depreciating rupee, and uncertainty around a potential Iran peace deal. These global factors have collectively dampened foreign appetite for emerging-market risk assets including Indian equities.
How have DIIs responded to FII outflows?
Domestic institutional investors have stepped in as a consistent counterweight, infusing ₹33,460 crore during the latest week and ₹76,030 crore across September. DII support — largely powered by systematic investment plan (SIP) inflows into mutual funds — has prevented a sharper market correction despite persistent foreign selling.
What does the Nifty's eight-week losing streak mean for investors?
The Nifty50 has now fallen for eight consecutive weeks, closing 3.1% lower at 22,422 on Thursday, signalling sustained risk aversion. Broader indices have fared worse, with Nifty Midcap and Nifty Smallcap falling 3.6% and 3.4% respectively in the latest week, suggesting the sell-off has spread beyond large-caps.
What key market events are scheduled in early October 2026?
Four major events converge in the first week of October: the RBI Monetary Policy Committee meeting from 5 to 7 October, the 57th GST Council meeting on 7 October, the US Federal Reserve's September meeting minutes also due on 7 October, and the start of the Q2 FY27 earnings season from 8 October. Each carries the potential to significantly shift market sentiment.
How does the FII-DII dynamic affect retail investors?
When FIIs sell and DIIs absorb, markets tend to correct more slowly but valuations can remain elevated relative to earnings. Retail investors channelling money through SIPs indirectly fund DII purchases, meaning their capital is supporting a market under foreign-selling pressure. If earnings or macro data disappoint, this balance could shift quickly.
