FIIs offload nearly ₹4,450 crore in equities on June 4; DIIs offset outflows

Foreign institutional investors (FIIs) continued their selling streak in Indian equities on Thursday, offloading shares worth ₹4,447 crore, while domestic institutional investors (DIIs) stepped in with net purchases of ₹4,360 crore, helping benchmark indices end the session largely unchanged.

According to provisional exchange data, FIIs bought shares worth ₹14,013 crore during the session but sold equities totalling ₹18,460 crore. DIIs, meanwhile, purchased shares worth ₹16,824 crore and sold shares worth ₹12,464 crore.

Despite the selling pressure from overseas investors, the domestic market remained resilient. The Sensex closed 13.84 points, or 0.02%, higher at 74,360.01, while the Nifty gained 10.95 points, or 0.05%, to settle at 23,416.55.

The broader market continued to outperform the benchmark indices, with both the Nifty Midcap 100 and Nifty Smallcap 100 advancing 0.5%, reflecting continued appetite for domestic-focused stocks.

The latest session adds to a year marked by significant divergence between foreign and domestic investor behaviour. So far in 2026, FIIs have been net sellers of nearly ₹3.18 lakh crore worth of Indian equities, while DIIs have emerged as a counterbalancing force, purchasing shares worth around ₹4 lakh crore.

Foreign investors have been particularly cautious on financial services stocks. In May, FIIs sold shares worth ₹23,141 crore in the sector, extending a trend seen over recent months. However, the pace of selling moderated from outflows of ₹30,856 crore in April and ₹60,655 crore in March.

Market participants attribute the sustained foreign outflows to a combination of global and domestic factors. Elevated US bond yields, a strong dollar and the rush to participate in artificial intelligence-led investment themes elsewhere have prompted a rotation of capital towards US markets. At the same time, concerns over slowing credit growth, rich valuations in Indian financial stocks and geopolitical tensions have weighed on sentiment.

Not all sectors have witnessed outflows, however. Services attracted net FII inflows of ₹7,204 crore in May, while capital goods received investments worth ₹2,799 crore. Metals and mining also recorded modest net purchases of ₹667 crore, suggesting selective interest despite the broader sell-off.

The intensity of foreign selling has accelerated this year. A recent Moneycontrol report noted that FII secondary-market selling in 2026 is running at roughly ₹400 crore every trading hour, nearly double the pace seen in 2025. Overseas investors have already surpassed their entire 2025 secondary-market outflows with seven months still remaining in the year.

The prolonged exodus has also pushed cumulative foreign portfolio investments in Indian equities to their lowest level in nearly a decade. Data from the National Securities Depository Ltd. showed aggregate net FPI investments in local equities stood at ₹7.3 trillion as of June 1, the lowest since 2016, underscoring the extent of the shift in foreign investor positioning towards Indian markets.