FIIs Extend Selling Streak to 10 Months; Domestic Funds Help Stabilise Markets

New Delhi — Foreign institutional investors (FIIs) continued their selling spree in April, marking the 10th straight month of net outflows from Indian equities. According to provisional exchange data, FIIs offloaded shares worth ?70,100 crore during the month.

In contrast, domestic institutional investors (DIIs) stepped in to support the market, investing around ?51,000 crore and cushioning the impact of sustained foreign selling. Even in the past week, FIIs sold nearly ?13,000 crore, while DIIs infused about ?11,500 crore, helping limit sharper declines.

Market experts attribute the continued FII outflows to a weaker rupee and elevated crude oil prices. According to Pabitro Mukherjee of Bajaj Broking, FIIs have sold equities worth ?2.4 lakh crore so far in 2026, remaining net sellers in all four months of the calendar year.

Rising global tensions have further aggravated the situation. Crude prices surged after the White House indicated that President Donald Trump had asked officials to prepare for a prolonged blockade of Iranian ports. Such a move could disrupt supplies through the critical Strait of Hormuz, intensifying inflation concerns and triggering risk-off sentiment among global investors.

Reflecting this pressure, benchmark indices ended the week lower. The Nifty 50 slipped 0.73 per cent over the week, closing at 23,997 on the final trading day. Meanwhile, the BSE Sensex fell 582 points to settle at 76,913, marking a 0.97 per cent weekly decline.

Despite the bearish undertone from foreign investors, strong domestic inflows have helped absorb selling pressure and prevent deeper corrections.

Looking ahead, analysts expect institutional flows to remain sensitive to global developments—particularly the trajectory of US–Iran relations and their impact on oil prices. Additionally, the outcome of upcoming state assembly elections could also influence short-term market sentiment.

With inputs from IANS