FII Flows

For FII flows to accelerate - lower crude oil prices, rupee stability and two consecutive quarters of earnings delivery without downgrades seem must, says Jignesh Desai of Centrum Broking.

Within the Nifty-500, DIIs were overweight in Consumer, public sector undertaking (PSU) Banks, Oil & Gas, Telecom, Metals, and Technology sectors in the June 2026 quarter, reports suggest.

This sustained FII buying has driven the BSE Capital Goods index 13 per cent in a year, and the BSE Metals pack 33 per cent against a near 3 per cent decline in the benchmark Sensex.

India, Wood wrote, continues to benefit from improving domestic fundamentals, with bank credit growth accelerating to 17-18 per cent year-on-year in 2026.

HSBC had earlier upgraded Indian equities to "Neutral" from "Underweight" and raised its 2026-end target for the BSE Sensex index to 84,000 levels.

In contrast, foreign institutional investor (FII) holding declined to a new low of 17 per cent in June 2026, the MOFSL note said.

While renewed geopolitical tensions in West Asia are likely to keep markets choppy, the Nifty 50 could rise to 26,500 by June 2027, around 10 per cent upside from current levels, Goldman Sachs said.

Zensar Technologies, CDSL, Bandhan Bank and MRPL from the Nifty Smallcap 100 index rallied between 5% and 12% in Friday's intra-day trade.

DII inflows touched a record $ 162 billion during Oct'24-Jun'26, while FII flows turned net positive at $1.3 billion in the second half of June, indicating improving sentiment."

The June monetary policy is a bold statement that addresses the present macro concerns even while striving to keep the resilient growth of the economy intact, says VK Vijayakumar

The government has promulgated an ordinance that, with effect from April 1, 2026, foreign institutional investors will be exempted from tax on both the interest and the capital gains

Indian stock markets fell in May 2026 amid rising crude oil prices, FII selling, US-Iran tensions and weak rupee concerns. Analysts explain what triggered the decline and what investors should do now

FPIs have reduced shareholding in large-cap stocks like HDFC Bank, Reliance and Infosys since 2022 while increasing exposure to Paytm, Eternal, Polycab and healthcare stocks, ICICI Securities said

While the bulk of foreign selling is likely over after the outflows over the recent months, Goldman Sachs does not see foreign investors returning to Indian shores in a hurry, even if oil prices dip.

Data has shown that on falling market days, retail investors were net buyers, and on rising days, they were net sellers. So, the idea that they are always disadvantaged is a misnomer, Kumar said.

India, which imports 90 per cent of its energy needs and relies heavily on supplies from West Asia, is among the most vulnerable to the energy shock

Indian stock markets crashed on April 2, 2026, with the Sensex falling over 1,500 points and Nifty dropping 2 per cent after US President Donald Trump's warning of intensified attacks on Iran

Going ahead, analysts believe the probability of another year of relative underperformance remains high, unless earnings improve meaningfully, crude stabilises, and foreign flows return

Earlier in FY20, the benchmark Sensex tanked 23.8 per cent due to the outbreak of the Covid-19 pandemic, while the Nifty 50 crashed 26.03 per cent.

FIIs have turned cautious on Indian equities, selling ₹1.07 trillion amid Iran war risks. BNP Paribas flags oil, inflation, CAD and earnings concerns.