FII Selling Continues For 10th Straight Week Despite Sharp Decline In Outflows, Nifty Falls 2.4% As Crude Oil And Global Tensions Weigh On Markets

Mumbai: Foreign Institutional Investors (FIIs) have been selling Indian equities for the past ten weeks straight, despite a significant drop in weekly outflows. Crude oil price surges, geopolitical unrest, and a lackluster stock market mood contributed to the ongoing selling pressure. Weekly FII outflows decreased to ₹2,697 crore from the previous week's ₹8,991 crore, offering some solace to domestic investors.

DIIs, on the other hand, have been acting as net buyers for the tenth consecutive week, increasing their purchases to ₹10,942 crore during the week.

So far in October, FIIs have withdrawn a total of ₹51,466 crore, while DIIs have invested ₹59,110 crore. Analysts speculate that the reduction in foreign outflows might provide temporary support, but the high crude oil prices remain a cause for concern. Indian stock market indices suffered widespread selling during the abbreviated trading week.

The Nifty 50 fell by 2.4%, closing at 22,600, with Bank Nifty dropping 2.8% and broader markets experiencing sharper declines. The Nifty Midcap 100 experienced a 5.6% drop, while the Nifty Smallcap 100 plummeted by 7.3%.

Investors are keeping a close eye on upcoming US Federal Reserve FOMC meeting and Bank of Japan's interest rate decision, as well as US GDP data, Brent crude oil prices, geopolitical events, and corporate earnings releases, which will impact market sentiment. Bernstein lowered its December 2026 Nifty 50 target from 26,000 to 25,000, emphasizing that merely cutting long-term capital gains tax won't ensure a steady flow of foreign investments.

Market participants will be watching institutional flows and global developments for indications of stability.