FII & DII trends in Oct 2026

Key takeaways:

• In the cash market, FIIs sold ₹45,161.71 crore during 20 trading sessions in October 2026.
• In October, FII gross purchases were ₹2,93,947.63 Cr, while gross sales were ₹3,39,109.34 Cr.
• Domestic Institutional Investors (DIIs) continued their strong buying interest, recording a net inflow of ₹62,220.11 Cr.
• DII gross purchases stood at ₹3,59,813.08 Cr in October, while gross sales were ₹2,97,592.97 Cr.

FIIs remained net sellers of Indian equities in October 2026, with outflows edging up from September. Selling was heaviest early in the month, as high US bond yields, expensive crude oil, a weak rupee and the RBI's first rate hike since February 2023 weighed on sentiment. It eased from mid-October, and FIIs were net buyers on six of the last ten sessions.

FII & DII activity in October 2026

FIIs bought shares worth ₹2,93,947.63 Cr and sold shares worth ₹3,39,109.34 Cr during October. This resulted in a net outflow of ₹45,161.71 Cr from the Indian equities market and made FIIs net sellers in the cash segment in October.

A closer look at the daily sessions reveals a distinct two-phase trend for FIIs in October:

• First Half (Oct 1 - Oct 15): FIIs were net sellers in all 10 trading sessions, offloading a cumulative ₹49,934.93 Cr. The heaviest single-day outflow occurred on October 8, when FIIs net sold ₹12,943.58 Cr.
• Second Half (Oct 16 - Oct 30): Foreign selling moderated substantially. FIIs recorded net buying in 6 of the final 10 sessions.

Domestic institutions, on the other hand, provided constant backing during the month. DIIs bought stocks worth ₹3,59,813.08 Cr and sold stocks worth ₹2,97,592.97 Cr, leading to a net inflow of ₹62,220.11 Cr. The table below summarises the cash-market FII and DII inflows and outflows for October 2026:

Why did FII selling persist in October 2026?

Several global and domestic factors contributed to the heavy foreign outflows during October. Here are a few of them:

• Spike in crude oil prices and Middle East tensions: Crude oil prices surged by almost 14% in October to a six-month high, briefly touching $117.64 per barrel, due to the rise in geopolitical risks around the US-Iran conflict and supply route constraints through the Strait of Hormuz. These high energy prices raised fears of imported inflation, fiscal pressure and corporate margin pressure in India, as it is highly dependent on imported crude.
• Rise in global interest rates and US bond yields: Following a 25-basis-point rate hike by the US Federal Reserve in September, elevated US Treasury yields continued to draw global capital toward dollar-denominated assets in early October. Sentiment stabilised in the final week of the month after the Fed voted 10–2 to keep rates unchanged at 3-3/4 to 4%.
• Corporate earnings and valuation adjustments: Foreign investors remained cautious around Q2 FY27 corporate earnings and relative valuations across emerging markets. FIIs continued to sell large-cap financial stocks, while selectively buying shares of pharmaceutical, healthcare and digital platform stocks.
• Increase in Repo rate: The RBI's Monetary Policy Committee (MPC) voted unanimously (6–0) on October 7, 2026, to raise the policy repo rate by 25 basis points from 5.25% to 5.50%, marking India's first rate hike since February 2023 and also changing its stance from "Neutral" to "Calibrated Tightening,". Furthermore, the RBI raised its FY27 CPI inflation projection to 5.2%.

Why did DII buying continue in October 2026?

Domestic Institutional Investors remained the primary pillar of liquidity for Indian equities in October:

• Record mutual fund SIP inflows: Domestic mutual funds continued to receive steady household capital. The monthly SIP inflows were at a record high of ₹32,490 Cr in October, compared to ₹32,297 Cr in August, with equity-oriented mutual funds attracting net inflows of ₹38,307 Cr.
• Net DII buying during high volatility days: DIIs were net buyers during 17 out of 20 trading sessions in October. Their biggest net buying days were on October 1 (DII net buying of ₹10,041.84 Cr and FII selling of ₹9,484.22 Cr) and October 8 (DII net buying of ₹10,703.11 Cr and FII selling of ₹12,943.58 Cr).
• Profit-booking only when FIIs returned: The three sessions in which DIIs were minor net sellers included October 16 (-₹3,661.28 Cr), October 27 (-₹1,250.03 Cr), and October 30 (-₹817.51 Cr) were the days when FIIs turned strong net buyers, allowing domestic fund managers to book tactical profits without disrupting market stability.

Conclusion

October 2026 drew the market’s attention to the susceptibility of foreign flows to global geopolitical shocks and also the increasing resilience of domestic institutional capital. While FII net cash-market selling increased to ₹45,161.71 Cr from ₹44,012.82 Cr in September, the sharp decline in FII outflows after October 15 and net buying of nearly ₹6,300 Cr during the final week offered early signs of stabilisation.

DIIs once again cushioned the market with ₹62,220.11 Cr in net purchases. As November begins, institutional flows will depend on Brent crude price movements, the outcome of the US midterm elections, and the conclusion of the Q2 earnings season.