Foreign institutional investors (FIIs) sold Indian equities for all five days of September, resulting in a net outflow of ₹5,667 crore, exchange data showed on Friday.
FIIs sold a net ₹1,305 crore on Friday, Sept 5.
Their total gross sales for the month stood at ₹55,290 crore against gross purchases of ₹49,623 crore.
Domestic institutional investors (DIIs) countered the selling, mopping up ₹13,444 crore worth of shares on a net basis month-to-date. On Thursday and Friday alone, they bought over ₹4,050 crore net, helping support markets despite sustained foreign outflows.
In August, FIIs sold a net ₹46,903 crore worth of equities, dragging their shareholding in Indian stocks to a 13-year low. DIIs, meanwhile, absorbed ₹94,829 crore during the month, exchange data showed.
In the preceding month of July, FIIs had offloaded ₹47,667 crore, with DIIs stepping in with ₹60,939 crore of net buying.
DIIs overtook foreign investors in March 2025 for the first time, and the growing gap underscores the rising dominance of domestic capital as the key driver of Indian markets, Prime Database data showed.
Markets update
The NSE Nifty 50 closed up 7 points at 24,741, holding above the 24,700 mark, while the BSE Sensex slipped 7 points to end at 80,712. The Nifty Bank index rose 39 points to 54,115 and the broader midcap index gained 116 points to 57,075, extending its recent outperformance.
For the week, both the Sensex and Nifty gained over 1%, recovering most of last week’s losses, while the midcap index rose more than 2%. Autos and metals led sectoral gains, while IT stocks were the top drag.“Despite optimism around policy reforms and supportive domestic factors, markets appear to be entering a consolidation phase, cautious given lingering tariff concerns and persistent foreign institutional outflows. That said, trading opportunities remain across sectors. Participants are advised to align their positions accordingly, with a focus on risk management,” Ajit Mishra – SVP, Research, Religare Broking Ltd said.
Also Read: Dividends provide a buffer for PSU stocks amid price weakness
