FII Turn Net Buyers at ₹1,975 Crore, While DII Turn Net Sellers at ₹1,209 Crore
Foreign Institutional Investors (FIIs) turned net buyers in Indian equities on Monday, August 10, 2026, providing some support to the domestic market amid a highly volatile trading session. According to provisional exchange data, FIIs recorded net buying of ₹1,975 crore, while Domestic Institutional Investors (DIIs) turned net sellers with net selling of ₹1,209 crore.
FII Buying Returns After a Long Gap
FIIs made total purchases worth approximately ₹13,161 crore during Monday's session, while their total sales stood at around ₹11,187 crore. This resulted in net FII buying of ₹1,975 crore.
The return of FII buying is significant because foreign investors had remained under selling pressure in recent sessions. Their positive flow on Monday provided an important cushion for the benchmark indices during periods of sharp intraday volatility.
DII Selling Creates a Flow Divergence
In contrast, DIIs recorded total purchases of approximately ₹15,868 crore against sales of around ₹17,159 crore, resulting in net selling of ₹1,209 crore.
The FII-DII flow combination created an interesting divergence in the Indian equity market: foreign investors returned as buyers while domestic institutions booked net selling during the session.
FII Buying Provides Support During Market Volatility
Monday's market action began with significant volatility, with the indices facing selling pressure and uncertainty during the trading session. However, the return of FII buying appeared to provide some support against the downside momentum.
The market's ability to absorb selling pressure despite elevated volatility suggests that institutional flows remained an important factor in limiting deeper declines.
India VIX Remains Elevated but Fear Eases Toward the Close
The India VIX, India's key volatility and market-fear indicator, remained closely watched throughout the session. Volatility increased sharply during the trading day as investors reacted to the market's downside pressure.
However, the fear premium appeared to ease toward the end of the session. Despite the intraday volatility, India VIX closed 0.72% higher, indicating that market uncertainty remained elevated even as the immediate fear moderated toward the closing stages.
What FII and DII Flows Signal for the Market
Monday's institutional flow data presents a mixed picture for the Indian stock market. The return of FII buying is a positive development from a liquidity perspective, particularly after a period of foreign selling. At the same time, DII net selling indicates that domestic institutional participation did not provide the same level of support.
For the near term, traders may closely monitor whether FII buying continues in the coming sessions. Sustained foreign inflows could help stabilize the broader market and potentially reduce downside pressure. Conversely, a return to aggressive FII selling could increase volatility, particularly if the India VIX remains elevated.
Key Takeaway
The August 10 session highlighted the importance of institutional flows in a volatile market environment. FIIs emerged as net buyers of ₹1,975 crore, while DIIs recorded net selling of ₹1,209 crore. FII buying provided some support during the market's volatile decline, while the India VIX remained elevated and closed 0.72% higher.
The key market signal from here will be whether Monday's FII buying represents the beginning of a sustained shift in foreign institutional flows or remains a one-session development.