Foreign Institutional Investors Suffer Net Outflow of Rs 8,167 Crore as Domestic Investors Increase Holdings; Nifty Rebounds Amid Ceasefire Hopes
Foreign Investors Continue to Pull Out of Indian Equities Amid Domestic Support
Foreign institutional investors (FIIs/FPIs) continued to pull money out of Indian equities on April 6, 2026, despite domestic institutions stepping in to stabilize the market. Provisional exchange data revealed that FIIs net sold shares worth Rs 8,167 crore, while domestic institutional investors (DIIs) net bought equities worth Rs 8,089 crore.
The market's resilience was largely due to the efforts of DIIs, who bought shares worth Rs 20,446 crore and sold Rs 12,357 crore during the session. In contrast, FIIs purchased shares worth Rs 8,838 crore but sold Rs 17,005 crore, highlighting the persistent divergence in 2026 flows.
| Entity | 2026 Flows So Far |
|---|---|
| FIIs | -Rs 1.99 lakh crore |
| DIIs | +Rs 2.63 lakh crore |
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
The broader trend remains sharply divergent, with FIIs pulling out money from Indian equities while DIIs continue to infuse capital. This sustained domestic support against continued foreign outflows is a key trend to watch in the coming months.
Indian markets staged a strong recovery on Monday after a weak start, with the Nifty gaining momentum in the second half of the session. The rebound was supported by reports of potential US–Iran ceasefire talks, which improved global risk sentiment and eased concerns over prolonged geopolitical tensions.
Siddhartha Khemka, Head of Research (Wealth Management) at Motilal Oswal Financial Services, noted that near-term uncertainty remains elevated as US President Donald Trump is scheduled to speak at the White House at 10:30 PM IST, with a 48-hour deadline given to Iran nearing its end.
The Nifty gained 1.1% to close at 22,968 (+255 points), while broader markets mirrored the recovery, with the Midcap100 and Smallcap100 indices rising 1.5% and 1.3%, respectively.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Investor Takeaway
Investors should be cautious of foreign outflows and focus on sustained domestic support.
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