DIIs net buyers at ₹38,715 crore; FIIs turn positive in August
Synopsis
DIIs have quietly absorbed every wave of FII selling over the past month — ₹38,715 crore in cumulative net purchases — while foreign investors have now turned net buyers in August. But with Brent crude flirting with US$90 and geopolitical tensions unresolved, the recovery in market sentiment remains fragile and data-dependent.
Key Takeaways
DIIs were net buyers in every week of the past month, totalling ₹38,715.18 crore .
FIIs have turned net buyers in August 2025 , clocking ₹4,115.93 crore month-to-date.
FIIs' cumulative one-month figure remains negative at ₹3,173.68 crore , as two weeks of heavy selling outweighed three weeks of buying.
The Nifty50 bottomed at 23,767.45 at peak FII selling pressure before recovering to 24,774.30 .
Sensex fell 0.62% to 78,009.25 ; Nifty declined 0.83% to 24,366 for the week.
Brent crude near US$87.18/barrel remains a key risk for India's inflation and import bill.
Domestic institutional investors (DIIs) have recorded net purchases in every single week over the past month, accumulating a total of ₹38,715.18 crore, even as foreign institutional investors (FIIs) have begun to turn more constructive on Indian equities in August 2025. The shift in foreign tone — with FIIs clocking net buys of over ₹4,115.93 crore month-to-date against DIIs at ₹17,053 crore — marks a meaningful improvement, according to market analysts.
FII Reversal: From Heavy Sellers to Cautious Buyers
The past month told a tale of two halves for foreign flows. FIIs sold heavily through the first two weeks, offloading ₹4,205.56 crore and ₹3,892.77 crore in successive weeks. The Nifty50 index bottomed out at 23,767.45 precisely on the day that selling pressure peaked — a textbook capitulation signal.
From 28 July onwards, FIIs flipped to buying, helping the Nifty recover to 24,774.30 by 3 August. However, the cumulative one-month figure for FIIs remains in negative territory at ₹3,173.68 crore, indicating that three weeks of inflows have not yet fully offset the damage from two weeks of aggressive selling, according to Pabitro Mukherjee, Deputy Vice President – Research, Bajaj Broking.
Last Week's Choppy FII Behaviour
FII activity last week was erratic rather than directional. They opened with two sessions of net buying, reversed into two sessions of net selling, and returned as buyers on the final trading day — closing the week as modest net buyers of ₹1,228.24 crore. The pattern reflects ongoing uncertainty rather than a sustained conviction-driven re-entry.
Markets End Week Lower on Crude and Geopolitical Headwinds
Despite the improved FII tone, broader market performance remained under pressure. The Sensex declined 0.62% to close at 78,009.25, while the Nifty50 fell 0.83% to settle at 24,366 for the week.
According to Ajit Mishra, Senior Vice President – Research, Religare Broking, the key headwinds were elevated crude oil prices and renewed geopolitical uncertainty. Brent crude stood around US$87.18 per barrel after briefly testing the US$90 mark, raising concerns over India's import bill, currency stability, and inflationary pressures. Volatility remained elevated as participants assessed the final leg of the Q1 FY27 earnings season and weighed the potential impact of higher energy costs on corporate margins.
What to Watch Next
With the Q1 FY27 earnings season in its closing stages, stock-specific developments are expected to remain a key market driver in the near term. Any further hardening of crude oil prices or an escalation in geopolitical tensions could weigh on the rupee and widen India's current account deficit. Conversely, a sustained FII return — backed by improving global risk appetite — could provide the next leg of upside for domestic indices.
Point of View
Preventing a sharper index correction each time FIIs hit the sell button — a pattern that has become more pronounced since 2022 as retail SIP flows have deepened the DII pool. The FII reversal in August is encouraging, but the cumulative negative figure tells you the smart money is not yet fully convinced. With crude oil near US$90 and the rupee under latent pressure, the macro environment is not clean enough for a sustained FII re-entry. Markets may remain range-bound until the crude trajectory and Q1 FY27 earnings aggregate picture become clearer.
NationPress
17 Aug 2026
Frequently Asked Questions
Why have DIIs been buying consistently in Indian markets?
DIIs have been net buyers in every week of the past month, accumulating ₹38,715.18 crore, largely driven by steady retail inflows through systematic investment plans (SIPs) and insurance funds. This consistent buying has cushioned the market against sharper falls during periods of FII selling.
Have FIIs turned buyers in the Indian market?
Yes, FIIs have turned net buyers in August 2025, clocking over ₹4,115.93 crore month-to-date. However, their cumulative one-month figure remains negative at ₹3,173.68 crore, as two weeks of heavy selling earlier offset three subsequent weeks of purchases, according to analysts at Bajaj Broking.
Why did the Sensex and Nifty fall last week despite FII buying?
The Sensex fell 0.62% to 78,009.25 and the Nifty declined 0.83% to 24,366, as elevated crude oil prices near US$87.18 per barrel, renewed geopolitical uncertainty, and mixed global cues weighed on sentiment. Concerns over inflation, the rupee, and corporate margins also kept investors cautious.
What is the impact of rising crude oil prices on Indian markets?
Brent crude near US$87.18 per barrel — having briefly tested US$90 — raises India's import bill, puts pressure on the rupee, and risks stoking inflation. Higher energy costs also squeeze corporate margins, particularly for sectors with significant fuel or logistics exposure, according to analysts at Religare Broking.
What should investors watch in the coming weeks?
The closing phase of the Q1 FY27 earnings season will be a key driver of stock-specific moves. Broader market direction will depend on crude oil price trends, geopolitical developments, and whether FII buying gains enough conviction to turn the cumulative one-month flow figure positive.
