FIIs net seller for 3 trading sessions last week, DIIs continue to buy

Mumbai: Foreign institutional investors (FIIs) were net seller for three sessions during last week including the quarterly MSCI index rebalancing session on Monday (August 31, 2026), according to analysts.

Domestic institutional investors (DIIs) were net buyer in all five sessions during last week.

“FIIs stayed on the sell side for a third consecutive week during last week, offloading Rs 56.1 billion worth of Indian equities, while DIIs extended their buying streak with net purchases of Rs 231.6 billion,” said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.

Benchmark indices extended decline for the fourth week in a row as a sharp surge in crude oil prices amid escalating geopolitical tensions in West Asia weighed heavily on investor sentiment.

Renewed geopolitical tensions and a sharp rise in crude oil prices remained the biggest headwinds for Indian equities during the week.

Market breadth remained fairly resilient despite the continued weakness in benchmark indices. Domestic liquidity and stock-specific buying continued to offer support, with selective small-cap stocks witnessing buying interest while mid-cap stocks remained under pressure.

Friday’s recovery was supported by metals, insurance and selected financial stocks, showing that investors are shifting towards sectors displaying better relative performance.

The gap between benchmark and broader market performance indicates that investors are not taking a broad-based risk-off approach. Instead, buying remains focused on companies with better earnings visibility and improving relative strength.

Buying demand at lower levels saw the index closed off the lows at 23,897 levels down by 1.2 per cent. Broader market were mixed with Nifty Midcap witnessing profit booking and closed the week lower by 1.5 per cent while Nifty Small cap closed the week higher by 0.1 per cent.

Analysts said that on the domestic front, investors will continue to monitor foreign institutional flows, the rupee, crude oil prices and domestic liquidity.

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