Foreign Institutional Investors Sell Net Indian Equities Worth Rs 5,518 Crore on March 20

Market Update: March 20, 2026

Domestic Institutional Investors (DIIs) Lead Buying, While Foreign Investors (FIs/FPIs) Remain Net Sellers

According to provisional exchange data, DIIs net bought Rs 5703 crore worth of Indian equities on March 20, 2026, while FIs/FPIs net sold Rs 5518 crore. In the session, DIIs purchased Rs 22,938 crore and sold Rs 17,232 crore, while FIs/FPIs bought Rs 28,496 crore and sold Rs 34,015 crore.

Year-to-Date Performance

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For the year so far, FIs/FPIs have net sold Rs 1.37 lakh crore of Indian equities, while DIIs have net bought Rs 1.99 lakh crore.

Market Performance Analysis

The market sentiment remained cautious amid persistent Middle East tensions, elevated crude oil prices, and continued FII selling. Although the domestic equities saw a brief relief-led recovery on valuation comfort and short covering early in the week, the rally quickly reversed as renewed Middle East attacks pushed crude prices higher, reviving inflationary and macroeconomic concerns.

Sectoral Performance

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Autos, metals, and PSU banks outperformed, supported by bargain hunting following recent corrections. In contrast, oil & gas, FMCG, real estate, and financial services underperformed due to input cost pressures, rupee weakness, and stock-specific pressures.

Near-Term Outlook

Markets are likely to remain highly sensitive to geopolitical developments, movements in crude oil prices, and currency fluctuations. Key near-term catalysts include inflation data from Japan and the UK, commentary from US Federal Reserve Chair Jerome Powell, and PMI releases across the US and India. While near-term volatility driven by geopolitical risks and macroeconomic headwinds may persist, the ongoing correction and valuation reset are progressively creating selective long-term opportunities for disciplined investors adopting a balanced and patient approach.