- Foreign institutional investors sold Rs 9,484 crore in Indian equities on Oct 1
- FIIs' total selling in four sessions reached nearly Rs 34,965 crore by Oct 1
- Domestic institutional investors bought Rs 10,042 crore on Oct 1 to offset selling
Foreign institutional investors (FIIs) continued their aggressive selling in Indian equities on Oct. 1, offloading Rs 9,484 crore, taking their total selling over the past four trading sessions to nearly Rs 34,965 crore. According to provisional exchange data, domestic institutional investors (DIIs) remained strong buyers, purchasing shares worth Rs 10,042 crore.
The latest figures come after FIIs sold Rs 10,148 crore on Sept. 30, Rs 9,980 crore on Sept. 29 and Rs 5,353 crore on Sept. 28. Together, the four sessions saw FII outflows of Rs 34,965 crore. The heavy selling comes amid continued weakness in Indian equities, elevated crude oil prices, rising US Treasury yields and pressure on the rupee.
FII Selling Accelerates
FII selling intensified towards the end of September, with foreign investors offloading Rs 10,148.41 crore on September 30. It was their biggest single-day outflow in nearly six months and higher than the Rs 9,980.22 crore sold on September 29. The September 30 outflow was the largest since March 23, when FIIs sold around Rs 10,414 crore, based on the daily flow series.
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It was also higher than the Rs 7,985.88 crore outflow recorded on August 31 during the MSCI rebalancing. FIIs were net sellers in 16 of the 21 trading sessions in September, according to provisional exchange data.
DIIs Provide Strong Counterweight
Domestic institutional investors have continued to provide a significant counterweight to the foreign selling. DIIs bought Rs 10,042 crore on Oct. 1, after purchasing Rs 11,272 crore on Sept. 30, Rs 6,953 crore on Sept. 29 and Rs 5,189 crore on Sept. 28. DIIs were net buyers in all 21 trading sessions of September, with cumulative purchases of around Rs 76,030 crore, according to the provisional data cited.
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This means domestic institutional buying more than offset foreign selling on a net-flow basis during the month, although the persistent FII outflows have continued to weigh on market sentiment.
FII Flows Remain Volatile In 2026
According to NSDL data, foreign investors have sold shares worth around Rs 2.69 lakh crore so far in 2026. The monthly flow pattern has been volatile. FIIs sold around Rs 49,340 crore in June, before turning net buyers in July with purchases of around Rs 20,200 crore. They bought another Rs 29,631 crore in August before returning to heavy selling in September.
NSDL data puts September's FII selling at around Rs 35,861 crore, while the provisional exchange data cited for the month indicates a higher outflow of around Rs 44,013 crore. The figures can differ because of differences in methodology and reporting periods between the datasets.
The sharp increase in foreign selling towards the end of September comes against a challenging global backdrop.
Elevated crude oil prices have raised concerns over India's import bill and inflation outlook, while higher US Treasury yields have reduced the relative attractiveness of emerging-market assets. The rupee has also remained under pressure against the US dollar.
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