FIIs pull out ₹30,374cr from Indian equities in May
What's the story
Foreign institutional investors (FIIs) have sold Indian equities worth ₹2.22 lakh crore in 2026, continuing their net selling streak for the third consecutive month. So far this month, they have sold shares worth ₹30,374 crore. On Friday alone, FIIs sold domestic shares worth ₹4,440.47 crore, while domestic institutional investors (DIIs) were net buyers at ₹6,003.53 crore.
Market impact
How did the markets fare?
The recent FII trends have had a major impact on the Indian stock market. Despite strong selling pressure in pharma and health stocks, DII's buying activity helped benchmark indices end with gains. The Nifty gained 64.60 points or 0.27% to close at 23,719.30, while Sensex settled at 75,415.35, up by 231.99 points or 0.31%.
Investor outlook
Factors affecting investor sentiment
Pabitro Mukherjee, Associate Vice President - Research at Bajaj Broking, has commented on the current FII trends. He said that investor sentiment remains cautious due to persistent geopolitical tensions and rising crude oil prices. The Indian rupee further weakened during the week, slipping to a fresh all-time low against the US dollar. A sharp rise in bond yields over inflation concerns and fears of prolonged higher interest rates kept investors on edge.
Future trends
Looking ahead
Bajaj Broking has predicted that institutional activity will be largely driven by global developments in the future. The progress or deterioration of US-Iran negotiations will remain a key factor to monitor, with significant implications for geopolitical stability and possible impact on crude oil price volatility. In March, a war-induced sell-off made it the worst month this year with an exodus worth ₹1.17 lakh crore.