FII & DII Report 12 August 2026: DII Buying Surges ₹5,842 Crore as PSU Banks Rally 2%
Domestic Institutional Investors (DIIs) stepped up buying sharply on 12 August 2026, pumping ₹5,841.66 crore into Indian equities, while Foreign Institutional Investors (FIIs) remained net sellers with outflows of ₹1,002.50 crore. The strong DII buying support helped the Nifty recover from an early sell-off and finish almost flat after briefly falling below the 24,300 level.
The trading pattern was particularly notable in the banking sector, where the Nifty PSU Bank Index rallied around 2%, outperforming the broader market as public-sector banking stocks provided support during the afternoon recovery.
FII Selling Continues, DII Buying Accelerates
According to the FII and DII trading data for 12 August 2026, DIIs recorded gross purchases of ₹21,518.55 crore against sales of ₹15,676.89 crore. This resulted in a strong net DII investment of ₹5,841.66 crore.
In contrast, FIIs bought equities worth ₹16,584.64 crore but sold ₹17,587.14 crore, resulting in net selling of ₹1,002.50 crore.
The numbers highlight a clear divergence between foreign and domestic institutional flows. While FIIs continued to sell, DIIs provided significant buying support, helping absorb the selling pressure in the market.
Nifty Recovers After Sharp Opening Sell-Off
The Indian stock market faced strong selling pressure during the first half of Wednesday's session. The Nifty came under pressure from the opening and decisively moved below the 24,300 level as selling intensified.
However, the market sentiment changed during the afternoon session. From around 2:00 PM, domestic institutional buying increased, helping the benchmark index recover a substantial portion of its intraday losses.
The late-session recovery allowed the Nifty to close near the flat zone despite the heavy volatility witnessed during the day.
This price action suggests that DII buying played an important role in limiting the downside and supporting the broader market during the second half of the session.
PSU Banks Outperform as Nifty Struggles
One of the strongest sectors during the session was the public-sector banking space.
The Nifty PSU Bank Index gained around 2%, bucking the broader market weakness. PSU banking stocks continued to attract buying interest even as the benchmark Nifty remained under pressure for much of the trading session.
The sector's strength is particularly important because the available positioning data also shows a relatively high long bias among DIIs.
The combination of strong DII cash-market buying and strength in PSU banks indicates that domestic institutions may be providing support to selected sectors despite continued foreign selling.
F&O Positioning: FIIs Remain Heavily Short
The open-interest positioning data for 12 August provides another important signal.
FIIs held an 87% short position and only 13% long position in the index, indicating a strongly bearish positioning bias among foreign institutional participants.
DIIs, on the other hand, held 71% long positions compared with 29% short positions.
Clients were even more bullish, with 78% long positions and 22% short positions. Proprietary traders had a relatively balanced but slightly bearish positioning, with 44% long and 56% short positions.
FII and Index Positioning Show a Major Divergence
The most interesting aspect of the current market setup is the sharp difference between FII positioning and actual market price action.
FIIs continue to maintain an aggressive short bias in index futures, with 87% of their reported position on the short side. At the same time, DIIs remain heavily long at 71%, while clients are positioned at 78% long.
Despite the heavy FII short positioning, the market managed to recover from its intraday lows and close near flat. This suggests that domestic institutional buying is currently acting as an important counterforce to foreign selling.
If this pattern continues, the market could remain highly volatile, with sharp intraday swings driven by the battle between FII selling and DII buying.
Market Outlook
The FII vs DII positioning gap remains one of the most important factors to watch. FIIs are maintaining a heavily bearish index position, while DIIs continue to absorb market weakness through aggressive cash-market buying.
For the near term, this could result in continued volatility rather than a one-way market trend. If FII selling persists but DII buying remains strong, domestic sectors such as PSU banks could continue to outperform and help limit broader market declines.
The FII/DII figures and F&O positioning percentages above are based on the data provided for 12 August 2026. Institutional positioning is an indicator of market exposure and should not be treated as a standalone prediction of future market direction.