DIIs buy ₹4.16L crore worth of equities in 2026
What's the story
Domestic institutional investors (DIIs) have been on a buying spree in the Indian equity market this year, with their net purchases surpassing ₹4.16 lakh crore in just over five months of 2026. On the other hand, foreign institutional investors (FIIs) have been selling off Indian equities worth some ₹2.7 lakh crore during the same period. The trend has continued this month as well, with DIIs buying shares worth ₹39,098 crore while FIIs sold stocks worth nearly ₹35,445 crore.
Market resilience
Record DII purchases in March amid geopolitical crisis
In January, the Nifty index hit new lifetime highs, but February brought concerns over AI's impact on heavyweight IT stocks. Despite these fears, DIIs continued to buy shares worth ₹38,423 crore that month. The geopolitical crisis in March led to an unprecedented FIIs sell-off of nearly ₹1.2 lakh crore worth of shares. However, DIIs stayed resilient and net bought shares worth nearly ₹1.36 lakh crore, the highest monthly purchase by domestic institutional investors so far this year.
Steady buying
Continued buying trend in subsequent months
The following months were marked by heightened volatility due to the political situation in the Middle East. Despite this, DIIs kept buying Indian equities worth ₹51,064 crore in April and ₹82,669 crore in May. This steady buying trend shows that mutual funds, insurers, pension vehicles and treasuries are still net buyers on Dalal Street even though their net purchases have decreased from last year.
Investor reassessment
Retail investors' equity exposure declines
The last two years of muted market returns have led retail investors to reassess their stock market exposure. Monthly mutual fund SIP inflows fell to ₹31,115 crore in April from a record high of ₹32,087 crore in March. However, on a year-on-year basis, monthly SIP inflows increased by 18% from ₹26,400 crore in April 2025.