The capital markets were saved by the domestic institutional investors on Monday, after they bought 4 times more equities than the foreign portfolio investors offloaded.
DIIs bought stake worth Rs 4,123.92 crore and remained net buyers for the third session in a row after the Indian equity market bounced back from a three-day long slump.
On the other hand, FPIs remained net sellers for the seventh consecutive session and offloaded Indian equities worth Rs 1,151.48 crore, as per NSE's provisional data.
So far in April, the overseas investors have pulled out nearly Rs 53,000 crore, according to National Securities Depository Ltd.'s data.
In 2026 so far, the FPIs have sold Indian shares worth Rs 1.84 lakh crore. The month of March recorded the sharpest selloff, with FPIs off-loading more than Rs 1.17 lakh crore worth of stocks.
Foreign portfolio investor ownership in Indian equities fell to a 16-year low in the March quarter, while domestic investors raised their shareholding to a record 29%, according to Morgan Stanley research released on April 24.
The shift points to a change in who owns listed Indian companies. Domestic institutions and households increased holdings, helping offset weaker foreign participation. Morgan Stanley said resilient local flows and lower foreign positioning could support demand for primary issuances and a pick-up in buybacks.
Domestic ownership in the listed universe rose 40 basis points from the previous quarter. The increase was led by domestic institutions, which raised ownership by 58 basis points to 19.3%. Direct household ownership also increased, rising 20 basis points.
By contrast, FPI holdings fell 90 basis points during the quarter, taking foreign ownership to its lowest level in 16 years, the report said.
Market Recap
Indian equity benchmarks halted a three-session decline and closed higher, despite uncertainty around stalled US-Iran talks. The Nifty ended 0.8% higher to close above the 24,000 mark. The Sensex also gained 0.8%, rising over 600 points to settle at 77,303.
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