Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) displayed contrasting trading patterns today, with foreign investors selling Indian equities while domestic institutions demonstrated strong buying interest. The divergent investment behavior reflects different market perspectives between international and local institutional players.

Trading Activity Summary

The institutional trading data reveals a clear contrast in investment approaches between foreign and domestic players:

Market Impact Analysis

The substantial difference in transaction volumes highlights the significant role of domestic institutional investors in supporting market liquidity. DIIs purchased over 16 times the value that FIIs sold, demonstrating robust domestic institutional confidence in Indian equities. This buying pattern suggests that domestic institutions are capitalizing on opportunities created by foreign selling pressure.

Investment Flow Dynamics

The contrasting investment flows indicate different risk assessments and market outlooks between foreign and domestic institutional investors. While FIIs reduced their exposure to Indian markets through net selling, DIIs increased their positions substantially. The net positive institutional flow of ₹1,641.72 crore provides strong support to market sentiment and helps absorb selling pressure from foreign investors.

This trading pattern reflects the evolving dynamics of institutional participation in Indian capital markets, where domestic institutions continue to play an increasingly important role in market stability and growth.

Foreign Portfolio Investors (FPIs) extended their selling streak into 2026, offloading ₹3,268.60 crore worth of Indian equities on the first trading day of the year. This marked the eighth consecutive session of net selling by overseas investors, highlighting the persistent exodus of foreign capital from Indian markets.

Sustained Foreign Selling Pressure

The latest selling activity represents a continuation of the significant outflow trend that dominated the previous year. FPIs had offloaded stocks worth ₹3,597.38 crore on New Year's Eve and ₹3,844.00 crore on the preceding Tuesday, demonstrating the sustained nature of foreign divestment.

The overseas investors experienced a major exodus from Indian markets during 2025, primarily driven by the decline in the rupee's value. They net offloaded shares worth ₹1.66 lakh crore during the calendar year, ending with net selling of ₹22,611.00 crore in December alone.

Domestic Institutional Support

Domestic Institutional Investors (DIIs) began the year on a positive note, purchasing ₹1,525.89 crore worth of equities. This buying activity provided partial support against the foreign selling pressure, though it was insufficient to offset the complete outflow.

Market Impact And Trading Summary

The contrasting investment flows resulted in significant market dynamics:

Despite the substantial foreign selling, the Nifty 50 managed to end with a slim gain of 0.06% at 26,146.00, sustaining momentum above the 26,000 mark. The Sensex closed marginally lower by 32 points at 85,188.00. Market breadth remained positive for the second straight session with an advance-decline ratio of 1.14 on the BSE, indicating continued stock-specific opportunities in early January trading.