Domestic institutional investors (DIIs) net bought 16 times more securities than foreign portfolio investors (FPIs), according to data released by the NSE on Monday. This substantial increase took place amid rallies of Indian equities markets as the US and Iran reach closer to a peace deal.
FPIs turned net buyers of Indian equities, mopping up shares worth Rs 2,124.98 crore after thirteen selling sessions. The overseas investors have offloaded Rs 63,450 crore in June so far. DIIs net purchased securities worth Rs 3,189.2 crore. FPIs have sold Indian equities aggregating up to Rs 2.8 lakh crore in 2026 till now.
ALSO READ: Are High Valuations Behind FIIs Exit In India? Samir Arora Explains
The FPIs have sold shares worth Rs 35,962 crore in January, according to data on the NSDL. On the other hand, FPIs in February have bought stakes, worth Rs 22,615 crore, aided by improving risk sentiment in the geoeconomics space.
In March they sold equity worth Rs 1.18 lakh crore, posting a month with the highest ever selling. In April they have offloaded stakes worth Rs 60,847 crore.
Market veteran Sameer Arora argued that a large part of the capital is being reinvested within the market rather than being pulled out of India altogether. Citing data from an ICICI Securities report, he stated that foreign ownership in some of India's largest companies has declined significantly over the past decade. He added that the reduction in holdings does not necessarily indicate a broad-based exit from the country.
He suggested foreign investors are not selling because valuations are expensive. Instead, they are reducing exposure to slower-growth businesses and reallocating capital towards new businesses.
The Reserve Bank of India (RBI) announced the investment limits for Foreign Portfolio Investors (FPIs) in government securities and state development loans (SDLs) for fiscal year 2027 two weeks prior, providing overseas investors with a larger investment window in India's debt market.
ALSO READ: RBI Outlines FPI Limits: Rs 4.62 Trillion For G-Secs, Rs 1.53 Trillion For State Bonds In H1
According to the central bank's notification, FPIs will be permitted to invest up to Rs 4.62 trillion in Government Securities (G-Secs) during the first half of FY27, covering the April-September 2026 period.
For State Development Loans, which are bonds issued by state governments, the investment limit for foreign investors has been fixed at Rs 1.53 trillion for the same period.
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