Foreign Portfolio Investors (FPIs) maintained their selling momentum in Indian equities for the seventh consecutive session on Tuesday, offloading stocks worth ₹1,499.8 crore according to provisional data from the National Stock Exchange. This sustained outflow reflects continued overseas investor caution toward Indian markets amid various global and domestic factors.

FPI Selling Pattern Intensifies

The Tuesday selloff follows a pattern of consistent FPI outflows that began the week with a substantial ₹3,638.4 crore net sale on Monday. Last week's trading sessions also witnessed significant overseas investor exits, with FPIs offloading ₹3,769 crore worth of equities on Friday and ₹3,367 crore on Thursday.

According to data from the National Securities Depository Ltd, the cumulative FPI outflow from Indian equities has crossed the ₹18,000 crore mark, reaching ₹18,585 crore so far in 2026.

Domestic Institutions Counter FPI Outflows

While foreign investors continued their exit strategy, domestic institutional investors (DIIs) maintained their supportive stance toward Indian equities. DIIs emerged as net buyers on Tuesday, purchasing shares worth ₹1,181.78 crore. This follows Monday's substantial DII buying of ₹5,839.3 crore and continues their positive streak that has extended beyond 50 sessions. Last Friday, DIIs had bought equities worth ₹5,596 crore, demonstrating consistent domestic institutional support.

Market Performance Amid Mixed Flows

Indian benchmark indices ended marginally lower on Tuesday despite domestic institutional buying support. The BSE Sensex declined 250.48 points or 0.30% to close at 83,627.69, while the Nifty slipped 57.95 points or 0.22% to settle at 25,732.30. The Nifty's close below the 25,750 mark occurred amid weekly F&O expiry-related volatility.

Broader Market Performance

The broader market indices showed mixed performance during Tuesday's session. The Midcap index eased 0.20%, reflecting the cautious sentiment in mid-sized companies. However, the Smallcap index demonstrated resilience, outperforming the benchmark indices with a gain of 0.60%.

Geopolitical Concerns Weigh on Sentiment

Market sentiment faced additional pressure from renewed geopolitical concerns following US President Trump's announcement of a 25% tariff on countries trading with Iran. This development has raised potential risks for India's exports and strategic projects, particularly the Chabahar Port, adding to investor uncertainty in the current market environment.

Foreign Portfolio Investors (FPIs) continued their sustained selling pressure on Indian equities, marking the sixth consecutive session of net outflows on Monday. The overseas investors offloaded stocks worth ₹3,638.4 crore, according to provisional data from the National Stock Exchange, maintaining the bearish sentiment that has characterized their recent market approach.

FPI Selling Momentum Intensifies

The Monday selloff follows a pattern of consistent foreign investor withdrawal from Indian markets. In the previous session, FPIs had offloaded ₹3,769 crore worth of equities, while Thursday witnessed selling worth ₹3,367 crore. This sustained outflow has pushed the total FPI selling beyond a significant milestone.

According to data from the National Securities Depository Ltd., the cumulative outflow from local shares has crossed the ₹15,000-crore mark, reaching ₹15,476 crore so far in 2026.

Domestic Institutions Counter Foreign Selling

While foreign investors maintained their selling stance, domestic institutional investors demonstrated strong buying appetite. These local institutions mopped up shares worth ₹5,839.3 crore on Monday, building on their previous session's purchase of ₹5,596 crore worth of Indian equities. This domestic buying has provided crucial support to market stability amid foreign outflows.

Market Performance Defies Selling Pressure

Despite the sustained FPI selling, Indian equities managed to break their five-day losing streak, ending near the day's high. The recovery was attributed to India-US trade deal hopes and anticipation surrounding the upcoming earnings season.

Both indices experienced significant intraday volatility, falling nearly 0.90% during trading hours before staging a sharp recovery that saw gains of up to 0.50%. Nifty, which had fallen below the 25,000 levels, recovered over 300 points from the day's low to close near 25,800.

Sectoral and Broader Market Trends

The broader market indices presented a mixed picture, with mid and small-cap segments ending in negative territory. Nifty Midcap 150 declined 0.17%, while Nifty Smallcap 250 closed 0.67% lower.

Sectoral performance showed divergence, with most indices posting gains. Nifty Metal and Nifty PSU Bank led the advance, supported by firm metal prices amid supply-side constraints and renewed buying interest. However, Nifty Media and Nifty Realty were among the laggards.

Analysts at Bajaj Broking Research noted that safe-haven assets sustained demand due to persistent geopolitical tensions, helping precious metals extend their rally and supporting the commodities space's outperformance.