FIIs Turn Net Buyers: ₹10,177 Cr Inflow in July Equities

Foreign Portfolio Investors (FIIs) have concluded a five-month net selling streak, emerging as net buyers in Indian equities during July. Their acquisitions totaled ₹10,177 crore, signaling a notable shift in market dynamics.

This reversal comes after FIIs had divested a substantial ₹2.64 lakh crore in 2026 through continuous selling. Domestic Institutional Investors (DIIs) simultaneously sustained their buying momentum, contributing to the market’s activity.

Key Market Moves

• FII Net Buying in July: ₹10,177 crore
• Previous FII Net Selling Period: Five consecutive months
• Total FII Divestment in 2026: ₹2.64 lakh crore
• DII Stock Acquisition on Tuesday: Approximately ₹1,664.16 crore

The FII buying trend, if maintained for three additional sessions, would firmly establish their return as net buyers. This consistent activity from both FIIs and DIIs paints a complex picture of capital flows into India’s stock market.

Ownership Dynamics Shift

Analysis from Morgan Stanley highlights a significant shift in ownership patterns across India’s top 75 companies. Domestic ownership has reached a record 29%.

Conversely, FII ownership in these same companies has fallen to a 16-year low. This rise in domestic holdings is primarily attributed to sustained buying from retail investors and mutual funds.

FII Volatility Noted

The historical behavior of FII investments demonstrates considerable volatility. Significant selling episodes occurred in March and April due to prevailing geopolitical tensions.

These outflows were briefly interrupted by a period of FII return in February, underscoring the responsive nature of foreign capital to global events. The current July buying thus marks a critical inflection point.