FIIs extend selling streak in Indian equities for fifth straight session, offload ₹5,688 crore

Foreign institutional investors (FIIs) prolonged their bearish stance on Indian stocks for a fifth consecutive trading day on Friday (September 26), offloading shares worth ₹5,688 crore, according to provisional market data from the National Stock Exchange (NSE).

The latest bout of net selling by overseas funds, which totalled ₹30,142 crore over the month to date, underscores persistent caution amid global uncertainties, including sticky US inflation readings and escalating geopolitical tensions in the Middle East.

Friday's activity capped a week of unrelenting FII outflows, with daily net sales ranging from ₹2,426 crore on September 24 to a sharper ₹5,688 crore on the final day.

The streak has contributed to a broader monthly drain, pressuring benchmark indices like the Nifty 50, which closed 1% lower on Friday after a volatile session.

On the BSE, companies erased nearly ₹16 lakh crore in market capitalisation over the week, with around ₹7 lakh crore wiped out on Friday alone.

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Domestic institutional investors (DIIs) , including mutual funds and insurance firms, have countered the foreign exodus aggressively, posting net buys in each of the five sessions. Their strongest inflow came on Friday at

₹5,843 crore, followed by ₹5,103 crore on Thursday, helping to cushion the downside for Indian equities.

For the month, DIIs have made purchases exceeding ₹55,736 crore.

The FII pullback can be attributed to a stronger US dollar and rising treasury yields, which have made emerging markets less attractive.

The Indian rupee ended at 88.7175 per US dollar on Friday, flat on the day but posting a weekly drop of 0.7% — its sharpest decline since late August.

Market participants will watch next week's US non-farm payrolls data closely, as any signs of a cooling labour market could prompt a reassessment of rate cut expectations and potentially stem the FII tide.