Foreign institutional investors sold $2.2 billion of Indian equities in October, though selling eased compared to September. Technology and telecom sectors attracted fresh interest from foreign players. Meanwhile, domestic institutional investors injected $6.3 billion during the month, extending their buying streak to 39 consecutive months as market volatility showed signs of cooling.
Domestic institutional investors injected $6.3 billion during the month, extending their buying streak to 39 consecutive months
Foreign institutional investors (FIIs) remained net sellers of Indian equities in October 2026, with net outflows of $2.2 billion, lower than the selling recorded in September, according to a report by Motilal Oswal Financial Services.
However, FII activity recovered in the second half of October, with net inflows of $2.8 billion, following outflows of $5 billion in the first half.
Domestic institutional investors (DIIs), meanwhile, recorded net inflows of $6.3 billion during the month, extending their buying streak to 39 consecutive months.
Technology leads inflows
Technology attracted the highest FII inflows in October at $1.4 billion, followed by telecom with inflows of $700 million.
On the other hand, FMCG and financial services each recorded outflows of $1 billion, while automobiles saw outflows of $800 million.
Overall, 14 of the 20 sectors recorded net FII outflows during October.
Financials face selling
For calendar year 2026 so far (CY26YTD), FIIs have sold Indian equities worth approximately $30.4 billion, the report said.
Financial services witnessed the highest outflows at $13.2 billion, followed by automobiles at $4.9 billion and FMCG at $4.5 billion. Services attracted the highest inflows at $1.4 billion, followed by metals at $1.3 billion and capital goods at $1.1 billion.
Motilal Oswal said FII volatility, a key overhang for Indian markets, appeared to be easing. It noted that healthy macroeconomic fundamentals, strong corporate earnings, a correction in valuations from their 2024 peak levels and robust domestic liquidity could support a stronger revival in foreign investor interest.
The brokerage added that an improvement in FII sentiment, along with easing geopolitical challenges, could help offset market headwinds and lay the foundation for a sustained rally.
Number check: The figures above match the report. I have retained "approximately" for the $30.4 billion CY26YTD figure because the report describes it as approximately $30.4 billion.