FIIs net buyers in India for 2nd straight week, ₹2,911 crore added
Synopsis
FIIs have turned net buyers in India for two straight weeks, adding ₹2,911 crore after ₹5,949 crore the previous week — a notable pivot after four consecutive months of net selling. But the bigger structural story is FII ownership collapsing from 20% to 14.3% over a decade even as DIIs have quietly overtaken them at 18.7%.
Key Takeaways
FIIs were net buyers for a second consecutive week , adding ₹2,911 crore as of 8 August 2026 , per provisional exchange data.
DIIs recorded net purchases of ₹7,768 crore , with inflows in four of five trading sessions.
In July 2026 , FIIs were net buyers of $2.5 billion — their first month of net buying after four consecutive months of net selling since March.
FII ownership of Indian equities has fallen from 20% in July 2016 to 14.3% in July 2026, while DII ownership has risen to 18.7% as of March 2026.
Over the past 12 months , secondary markets saw net FII outflows of $42.5 billion , even as primary markets drew net inflows of $7.8 billion .
Nifty50 closed the week at 24,570.65 , up 187.05 points from the prior week's close.
Foreign institutional investors (FIIs) remained net buyers in Indian equities for the second consecutive week as of 8 August 2026, adding a net ₹2,911 crore in the current week on top of ₹5,949 crore purchased in the previous week, according to provisional exchange data. The sustained inflow signals a tentative revival of overseas confidence in Indian markets after months of net selling.
What Is Driving the Buying
Pabitro Mukherjee, Deputy Vice President–Research at Bajaj Broking, attributed the momentum to easing geopolitical tensions. 'The sustained buying by both FIIs and DIIs was largely driven by the de-escalation of geopolitical tensions, which helped strengthen investor confidence and supported positive market sentiment,' he said.
Domestic institutional investors (DIIs) also maintained their buying streak, recording net purchases of ₹7,768 crore during the week, with inflows observed in four of the five trading sessions. The parallel buying by both investor classes has provided a dual support base for the market.
FII Turnaround After Four Months of Selling
FIIs had been net sellers for four consecutive months from March 2026 before turning net buyers in July 2026, when they recorded net purchases of $2.5 billion. That month, the Nifty50 rose 2.2% month-on-month, building on a 1.4% gain in June.
In July, the primary market recorded net FII inflows of ₹12,300 crore (approximately ₹123 billion), while the secondary market saw net FII inflows of ₹11,000 crore (approximately ₹110 billion), according to a note by JM Financial Institutional Securities.
Shifting Ownership Landscape
FII ownership as a share of total Indian equities has declined sharply — from 20% in July 2016 to 14.3% in July 2026, according to the JM Financial Institutional Securities note. Over the same period, DII ownership has risen steadily, reaching 18.7% of total Indian equities as of March 2026.
Notably, over the past 12 months, Indian primary markets attracted net FII inflows of $7.8 billion, while secondary markets recorded net FII outflows of $42.5 billion — underscoring a structural preference among overseas investors for new issuances over secondary market exposure.
Market Performance This Week
The Nifty50 closed the week at 24,570.65, up 187.05 points from the previous week's close of 24,383.60, as easing geopolitical tensions lifted broader investor sentiment, analysts noted. The index traded with a positive bias for most of the week, reflecting the combined support of FII and DII inflows.
Whether this two-week FII buying streak extends will depend on global risk appetite and any fresh geopolitical or macroeconomic triggers in the weeks ahead.
Point of View
But the structural picture remains sobering. FII ownership has slid from 20% to 14.3% over a decade, and secondary markets bled $42.5 billion in net outflows over the past year even as primary markets attracted $7.8 billion — suggesting overseas money is selectively entering via IPOs while quietly exiting the broader market. DIIs, now at 18.7% ownership, have effectively become the market's primary stabiliser. The current buying streak is geopolitical-tension-driven, which makes it inherently fragile; any fresh escalation could reverse flows quickly. The more durable question is whether FIIs structurally re-rate India or continue treating it as a tactical trade.
NationPress
8 Aug 2026
Frequently Asked Questions
Why are FIIs buying Indian equities for two consecutive weeks?
FIIs have been net buyers for two straight weeks primarily due to the de-escalation of geopolitical tensions, which boosted investor confidence and improved global risk appetite, according to Bajaj Broking's Pabitro Mukherjee. The trend follows four consecutive months of net FII selling from March 2026.
How much did FIIs and DIIs invest in Indian markets this week?
FIIs made net purchases of ₹2,911 crore in the current week ending 8 August 2026, while DIIs recorded net purchases of ₹7,768 crore, with buying observed in four of the five trading sessions, based on provisional exchange data.
What is the current FII ownership stake in Indian equities?
FII ownership of total Indian equities stood at 14.3% in July 2026, down sharply from 20% in July 2016, according to a note by JM Financial Institutional Securities. DII ownership, by contrast, has risen to 18.7% as of March 2026.
How did the Nifty50 perform this week?
The Nifty50 closed the week at 24,570.65, gaining 187.05 points over the previous week's close of 24,383.60, supported by easing geopolitical tensions and sustained institutional buying from both FIIs and DIIs.
What is the difference between FII flows into primary and secondary markets?
Over the past 12 months, Indian primary markets attracted net FII inflows of $7.8 billion, while secondary markets recorded net FII outflows of $42.5 billion, indicating that overseas investors have preferred new issuances over existing listed stocks.
