FII-DII data: FIIs turn net buyers for three straight sessions in Indian stock market; can the buying streak continue?

Foreign institutional investors (FIIs) have shown a positive trend in recent sessions, turning net buyers over the past three consecutive days in the cash market.

On April 17, FIIs invested ₹683.20 crore, adding to ₹382.36 crore worth of buying on April 16, and ₹666.15 crore on April 15, indicating a steady inflow of funds into the market.

Interestingly, following February 25 (when they bought ₹2,991.64 crore), FIIs have emerged as buyers for the first time in the last week of April, sparking a glimmer of hope for a possible trend reversal after a lengthy period of consistent outflows.

FIIs have remained net sellers all through 2026, reflecting sustained outflows from Indian equities. In April 2026, FIIs have pulled out ₹39,224.10 crore so far, following heavy selling of ₹1,22,540.41 crore in March. February also saw outflows of ₹6,640.78 crore, while January recorded a net selling of ₹41,435.22 crore.

The sharpest decline was witnessed in March, indicating heightened risk aversion amid global uncertainties following the US-Iran war. Overall, the trend highlights persistent pressure from foreign investors, which has weighed on market sentiment despite intermittent bouts of buying in recent sessions.

Domestic institutional investors (DIIs) have exhibited a cautious stance in recent sessions, emerging as net sellers over the past three trading days. On April 17, DIIs offloaded equities worth ₹4,721.48 crore, followed by net selling of ₹3,427.75 crore on April 16 and ₹568.98 crore on April 15.

However, DIIs have remained strong net buyers in 2026, providing consistent support to the markets amid foreign outflows. In April 2026, DIIs invested ₹29,696.62 crore, following robust inflows of ₹1,42,960.37 crore in March. February saw net buying of ₹38,423.11 crore, while January recorded inflows of ₹69,220.74 crore. This trend extends to December 2025 as well, with DIIs investing ₹79,619.91 crore.

Key reason that stopped sustained FII selling

Investors are curious if there is even a slight chance that trends might shift, as experts observe that the RBI’s robust actions to limit excessive speculation in currency markets have contributed to reversing the rupee’s extended depreciation trend. This has also helped the domestic currency bounce back from approximately ₹95.30 per dollar on March 30 to around ₹92.85 by April 17.

Experts also suggest that the anticipation of increased currency stability has encouraged FIIs to become marginal buyers during the last three trading days. Moreover, the drop in Brent crude prices to about $90, following recent developments in the Hormuz Strait, is anticipated to provide further support to the rupee in the short term.

“A major factor driving the FII outflows was the steady depreciation in the rupee. Partly, the depreciation of the currency was due to excessive speculation in the currency markets. RBI stepped in to drastically reduce this speculation, which resulted in the rupee appreciating to 92.85 levels from the low of 95.30 touched on March 30th. This is the principal reason that stopped sustained FII selling and turned them into buyers, though marginally, during the last three trading days,” said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.

Do 3 days of inflows constitute a trend reversal?

But investors must not see this buying as a sure-shot trend reversal. According to Mohit Gulati, CIO and managing partner of ITI Growth Opportunities Fund, three days of inflows are encouraging, but they do not constitute a trend.

Gulati believes that the current global risk-on environment has broadly lifted emerging market allocations. However, within Asia, the incremental FII dollar has been finding its way to Taiwan and China far more decisively than to India. What we are seeing here is largely spillover from broader celebration rallies, not a deliberate, conviction-driven reallocation to Indian equities, he said.

“For a durable reversal in FII flows, the market needs to satisfy three non-negotiable conditions: a material de-escalation on the geopolitical front, an earnings cycle that actually inflects upward, and a demonstrated return of policy and legislative momentum from the government. None of these are in place today with any degree of certainty. In the absence of these triggers, flows will remain episodic and shallow. Investors who chase this move purely on sentiment risk being caught on the wrong side when the narrative resets,​​​​​​​​​​” explained Gulati.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.