Foreign Institutional Investors Post Net Equity Sell of Rs 9,931 Crore, Domestic Institutional Investors Post Net Buy of Rs 7,208 Crore on April 2

Market Volatility Persists Amid Rising Global Tensions

Foreign investors (FIIs/FPIs) pulled out a significant amount of money from Indian equities on April 2, 2026, with a net sale of Rs 9931 crore. However, domestic institutional investors (DIIs) bucked this trend by purchasing shares worth Rs 7208 crore.

According to provisional exchange data, DIIs bought shares worth Rs 18,421 crore and sold Rs 11,213 crore during the session. In contrast, FIIs bought shares worth Rs 10,627 crore but sold Rs 20,558 crore.

Net Flows: FIIs vs DIIs

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The year 2026 has seen FIIs pull out a significant amount of money from Indian equities, with a net sale of Rs 19.1 lakh crore. On the other hand, DIIs have been net buyers, pumping Rs 2.55 lakh crore-worth of shares into the market.

The past financial year ended with FII/FPIs as net sellers of worth Rs 1.73 lakh crore of Indian equities. However, DIIs have been net buyers, purchasing Rs 2.41 lakh crore-worth of shares.

Market Performance

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Indian equity benchmarks closed on a positive note on April 2, 2026, indicating an overall constructive market sentiment. The Nifty 50 opened sharply lower by 296 points at 22,383.40 and declined further to an intraday low of 22,182.55 during the first half of the trading session. However, the trend reversed in the latter half as strong buying interest emerged, driving the index higher by 599.75 points from the day’s low to touch an intraday high of 22,782.30. Despite the weak opening, the index recovered fully and ended the session in positive territory at 22,713.10, registering a marginal gain of 33.70 points or 0.15% over the previous close.

Market analysts believe that Indian equities are likely to remain volatile in the coming week, with investor sentiment closely tied to evolving developments in the ongoing West Asia conflict. The US is assessing its response to potential actions on Iran's energy infrastructure, and recent comments from US President Donald Trump indicate a more assertive stance. Brent crude prices have remained elevated, sustaining concerns around imported inflation. Currency pressures have also intensified, with the Indian rupee weakening sharply towards record-low levels against the US dollar before recovering towards Rs 93, aided by active RBI intervention.

The central bank has reportedly intervened through both spot dollar sales and forward market operations, helping smooth volatility and prevent disorderly depreciation. Investors will monitor key economic indicators, including US FOMC meeting minutes, GDP data, initial jobless claims, and CPI prints, for cues on growth and the policy trajectory. Domestically, the RBI's upcoming rate decision assumes added significance, particularly in the context of elevated crude prices and imported inflation risks.

The onset of the Q4 earnings season is likely to add another layer of volatility. Q4FY26 earnings are expected to remain stable, with large-cap companies likely to report revenue growth in the range of -1% to +1.5% QoQ (constant currency), while mid-tier players continue to outperform. Margins are expected to remain range-bound, supported by currency tailwinds but offset by wage hikes and productivity pressures.