Steady DII Buying Keeps Indian Stock Market Resilient Amid Foreign Outflows
Mumbai – 10 August (IANS) – Domestic institutional investors (DIIs) have cemented their role as the backbone of India’s equity market, posting a net inflow of ₹5.13 lakh crore by 7 August 2026. This marks the third consecutive calendar year that DII purchases have breached the ₹5 lakh crore barrier, reinforcing the market’s internal strength.
The figure eclipses the ₹4.48 lakh crore logged during the same period in 2025, and follows full‑year net inflows of ₹7.88 lakh crore in 2025 and ₹5.26 lakh crore in 2024. Over the past 36 months (August 2023‑present), DIIs have accumulated ₹19.21 lakh crore in equity, while foreign portfolio investors (FPIs) have sold approximately ₹10 lakh crore, creating a clear net positive domestic bias.
Industry observers attribute this durability to a solid economic base, strong GST collection, and expanding retail participation via mutual‑fund platforms. Even as geopolitical uncertainty looms over West Asia, the Indian market remains a magnet for investors, helped by softer energy prices, better corporate earnings, and more reasonable valuation multiples than those observed in 2024.
Mutual‑fund flows into equity and balanced schemes continue to be robust, ensuring that fund houses retain sufficient capital to sustain buying. Experts expect this momentum to carry forward into the next quarters.
Sector‑wise, the June 2026 quarter saw DIIs concentrate on consumer staples, public‑sector banks, energy, telecom, metals and technology stocks. In contrast, allocations to private banks, NBFCs, capital‑goods, chemicals, real‑estate, healthcare and automotive sectors were comparatively restrained.
On the foreign side, after four months of net selling, FIIs have re‑entered the market, adding a fresh layer of buying that bolsters overall sentiment.
Collectively, the data underscores a resilient Indian equity market, underpinned by persistent domestic investing and an environment that continues to attract both local and foreign capital.