Foreign Investors Sell Rs 30,294 Crore This Week As Domestic Buying Offsets Outflows

Foreign institutional investors (FIIs) remained net sellers in Indian markets for the eighth consecutive week, offloading Rs 30,294 crore, according to exchange data.

Domestic institutional investors (DIIs), meanwhile, extended their buying streak, purchasing Rs 30,313 crore and fully absorbing foreign selling, analysts said.

“Month-to-date, FIIs have sold a net Rs 39,779 crore against DII net buying of Rs 40,355 crore, with the Nifty down 0.44 per cent from its September-end close of 22,620.45,” said Pabitro Mukherjee, Deputy Vice President-Research at Bajaj Broking.

Over eight weeks, sustained foreign selling and domestic buying coincided with a 7.57 per cent decline in the Nifty, from 24,366.00 to 22,520.45.

Foreign portfolio investors (FPIs) withdrew a net Rs 35,861 crore from Indian equities in September 2026, reversing the Rs 29,628 crore inflow recorded in August, according to a PL Capital (Prabhudas Lilladher) report.

Selling spanned financial services, energy, automobiles and metals. Financial services recorded the largest outflow at Rs 13,147 crore, compared with an inflow of Rs 10,494 crore in August.

The outflow was nearly six times the sector’s long-term average monthly outflow of Rs 2,237 crore.

Consumer Services attracted the highest foreign inflow at Rs 2,333 crore, marking its fourth consecutive month of positive flows. Services received Rs 2,302 crore, Healthcare attracted Rs 2,117 crore, and Construction secured Rs 1,311 crore.

Cumulative sectoral FPI outflows reached approximately Rs 2.60 lakh crore during January-September 2026.

PL Capital research analyst–Quant Mannat Gandhi said foreign investors continued to favour Consumer Services, Services and Healthcare. Inflows in these sectors remained above long-term averages.

“Quarterly holdings show a similar trend over time. FII exposure is gradually shifting from Banks and IT towards Electricals and Non-Ferrous Metals,” she said.

Analysts expect foreign selling and global headwinds to sustain market volatility, while strong domestic institutional buying could limit further losses.

Also Read: Delhi Airport Urges Flyers To Plan Journeys Ahead Amid Protest-Related Traffic Restrictions