FII Selling vs DII Buying: How Indian Markets Absorbed ₹5.30 Lakh Crore of Foreign Outflows
FII selling drained ₹5.30 lakh crore from Indian equities, while DII buying surged to ₹9.01 lakh crore from July 2025 to June 2026. Discover how domestic investors absorbed foreign selling and supported major stocks including HDFC Bank, Reliance Industries and TCS.
From July 2025 to June 2026, sustained Foreign Institutional Investor (FII) selling put pressure on Indian equities, while Domestic Institutional Investors (DII) emerged as a major stabilising force.
July 2025 to June 2026 - exact 12-month period
The monthly cash-market figures above are independently cross-checked against the published monthly FII/DII transaction series.
During this exact 12-month period:
FII net outflow: ₹5.298 lakh crore
DII net inflow: ₹9.007 lakh crore
DII buying above FII selling: ₹3.709 lakh crore
The data suggests that domestic institutional buying more than absorbed the foreign selling pressure, helping provide support to the Indian equity market.
Large-Cap Stocks Show the Same Pattern
The selling-versus-buying trend was also visible in major large-cap stocks:
HDFC Bank recorded the strongest FII reduction at 7%, while DIIs increased their holding by approximately 6%, indicating substantial domestic institutional absorption.
In Reliance Industries, FII holdings declined by 2%, compared with a 1.4% DII increase. In TCS, FII holdings fell 2.4%, while DII holdings increased 1.5%.
The Bigger Market Signal
The key takeaway is not simply that FIIs were selling. It is that domestic institutions were buying aggressively enough to counter a significant portion of that pressure.
With ₹9.007 lakh crore of DII net buying against ₹5.298 lakh crore of FII net selling, domestic institutions provided an important liquidity cushion during the 12-month period.