Foreign Investors Sell Indian Stocks Worth Rs 8692 Crore, Domestic Institutions Buy Rs 7980 Crore

Indian Equities Continue to Face Foreign Selling Pressure

On April 7, 2026, foreign investors continued to pull money out of Indian equities, despite domestic institutions stepping in to stabilize the market. According to provisional exchange data, foreign institutional investors (FIIs/FPIs) net sold shares worth Rs 8,692 crore, while domestic institutional investors (DIIs) net bought equities worth Rs 7,980 crore.

The data highlights the sustained trend of foreign outflows from Indian equities, with FIIs pulling out Rs 2.08 lakh crore so far in 2026. In contrast, DIIs have infused Rs 2.71 lakh crore, demonstrating robust domestic support.

Market Performance

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Indian equity markets extended their recovery for a third consecutive session on April 7, 2026, despite intraday volatility remaining elevated. The Nifty 50 benchmark index closed 155 points higher (+0.7%) at 23,123, marking a five-day high. The index's recovery was gradual, with the market staging a comeback from opening in the red amid global concerns.

Sectorally, most indices closed in the green, with IT stocks outperforming, gaining 2.5% on expectations of a stronger March quarter. Metal stocks also advanced 1.6%, supported by rising steel prices, improving demand, and expectations of tariff support. The Nifty IT index is expected to gain further momentum with Tata Consultancy Services set to kick off the IT earnings season with its Q4 results on April 9.

The global geopolitical tensions, particularly the threats from US President Donald Trump to Iran's infrastructure, continue to add to market uncertainty. Elevated crude oil prices remain a concern, with institutional activity remaining a key overhang. FIIs have continued to sell equities, with cumulative outflows of over ~Rs 26,000 crore so far this month, following record selling of more than Rs 1.2 lakh crore in March.

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Investors will closely track the RBI's interest rate decision due on April 8, 2026, where rates are widely expected to remain unchanged at 5.25%. The governor's commentary will be crucial for near-term market direction, given the rupee's near-record lows. With multiple event risks ahead, including the Trump deadline and the RBI policy outcome, some volatility is expected to creep into the market. However, the onset of the earnings season could keep stock-specific action active.