FIIs Sell Over Rs 70,000 Crore In April; DIIs Continue To Support Market

Foreign Institutional Investors (FIIs) continued their selling streak in Indian equities, remaining net sellers for the tenth consecutive month in April 2026. According to provisional exchange data, FIIs offloaded shares worth Rs. 701.4 billion during the month, underscoring sustained pressure from global and macroeconomic factors.

In contrast, Domestic Institutional Investors (DIIs) once again played a stabilising role in the market. DIIs emerged as net buyers in April, investing Rs. 510.6 billion and helping cushion the impact of persistent foreign outflows. This divergence between foreign and domestic flows has become a key trend in recent months.

The selling momentum by FIIs extended into the last week of April as well, with net outflows of Rs. 137.7 billion. DIIs, however, infused Rs. 115.9 billion during the same period, partially offsetting the impact of foreign withdrawals, but were not able to fully neutralise the pressure.

So far in calendar year 2026, FIIs have remained net sellers in every month, cumulatively offloading Rs. 2,407.5 billion worth of equities. Analysts attribute this continued outflow to a combination of factors, including a weakening rupee and elevated crude oil prices, both of which have weighed on investor sentiment toward emerging markets like India.

Crude oil prices saw a sharp uptick last week following confirmation from the White House that US President Donald Trump had asked officials to prepare for a prolonged blockade of Iranian ports. Such a move could disrupt supply routes through the strategically crucial Strait of Hormuz, raising concerns over sustained supply shortages. The surge in oil prices has reignited inflation fears globally, prompting risk-off sentiment among foreign investors and contributing to consistent FII selling across all four trading sessions last week.

Despite these headwinds, the benchmark Nifty index managed to close marginally higher, gaining 0.4 per cent over the week. The market traded within a broad range and witnessed heightened volatility. The index began the week on a positive note and touched an intra-week high of 24,334 during the April 29 session. However, gains were capped due to selling pressure at higher levels amid geopolitical tensions and rising crude prices, eventually settling near the 24,000 mark.

Market participants noted that stock-specific action remained prominent as the quarterly earnings season progressed, with investors selectively positioning themselves despite broader uncertainties. FIIs have also shown selective buying interest in around 20 stocks over the past four quarters, indicating a more targeted investment approach rather than a complete exit from Indian equities. Stocks such as BlackBuck, Vishal Mega Mart, South Indian Bank, MTAR Technologies, Home First Finance Company, Polycab India, Hitachi Energy India, GMR Airports, Bharat Petroleum and Hindustan Petroleum were picked up by FIIs during the period.

Going ahead, market direction is expected to depend on global cues, particularly crude oil trends, currency movements, and geopolitical developments, along with the strength of domestic inflows that continue to act as a crucial buffer against foreign capital outflows.

“Institutional activity is likely to be primarily influenced by global news developments. In particular, progress or setbacks in US–Iran negotiations will remain a critical factor to monitor, given their significant implications for geopolitical stability and their potential to drive volatility in crude oil prices. The outcome of the state assembly election on Monday (April 4) will also have an impact on the Indian equity market in the coming week,” Pabitro Mukherjee, associate vice president - research at Bajaj Broking, said.