FIIs recorded net outflows of rs1,31,122 crore; DIIs recorded net inflows of Rs2,44,052 crore
FinTech BizNews Service
Mumbai, 26 May 2026: Ventura has released its latest Mutual Fund Quarterly Booklet for the quarter ended March 2026, offering investors a comprehensive overview of market trends, mutual fund industry developments, and institutional investment activity during the financial year.
According to the report, Indian equity markets witnessed divergent institutional investment trends during Jan–Mar 2026, with FIIs remaining aggressive net sellers while DIIs continued strong buying activity.
The Jan–Mar 2026 period marked the highest quarterly FII sell-off of the fiscal year, driven by global market uncertainty, elevated US bond yields, dollar strength, and cautious sentiment across emerging markets. However, strong domestic inflows helped cushion the impact of foreign selling during the quarter.
Institutional Flow Trends FY25–26 observed by Ventura: DII Strength Counters Persistent FII Selling
Particulars | FY24–25 | FY25–26 | Change |
Total FII Net Flow | –Rs4,03,581 Cr | –Rs2,64,819 Cr | FII outflows narrowed by ~34% YoY |
Total DII Net Flow | Rs5,71,959 Cr | Rs8,43,206 Cr | DII inflows increased by ~47% YoY |
Jan–Mar Quarter FII Flow | NA | –Rs1,31,122 Cr | Highest quarterly outflow |
Jan–Mar Quarter DII Flow | NA | Rs2,44,052 Cr | Strongest quarterly support |
The comparison highlights that FII selling moderated by nearly 34% YoY in FY25–26, while DII inflows surged approximately 47% YoY, reflecting the growing resilience of domestic investors in supporting Indian markets despite continued foreign outflows. The Jan–Mar 2026 quarter highlighted strong domestic resilience in Indian markets, as robust DII inflows of Rs2,44,052 Cr more than offset sharp FII outflows of Rs1,31,122 Cr amid heightened global uncertainty and risk-averse foreign investor sentiment.
Quarterly Institutional Flow Trends – FY25–26
Quarter (FII Investments) | Net Amount | Quarter (DII Investments) | Net Amount |
April–June 2025 | Rs21,997 Cr | April–June 2025 | Rs1,68,545 Cr |
July–September 2025 | –Rs1,18,454 Cr | July–September 2025 | Rs2,21,111 Cr |
October–December 2025 | –Rs37,240 Cr | October–December 2025 | Rs2,09,498 Cr |
January–March 2026 | –Rs1,31,122 Cr | January–March 2026 | Rs2,44,052 Cr |
Total FY25–26 | –Rs2,64,819 Cr | Total FY25–26 | Rs8,43,206 Cr |
FIIs started FY25–26 on a positive note but turned aggressive sellers in the second half of the fiscal year, with Jan–Mar 2026 witnessing the sharpest outflows of the year. In contrast, DIIs remained consistent buyers throughout FY25–26 and emerged as the key stabilizing force, with the strongest domestic participation recorded during the same quarter when FII selling intensified.
Ventura Outlook
The growing strength of domestic institutional flows continues to reinforce the structural resilience of Indian equity markets. While FII flows may remain influenced by global factors such as US Federal Reserve policy, bond yields, currency volatility, geopolitical developments, and crude oil prices, strong domestic consumption, rising retail participation, and sustained mutual fund inflows are expected to support long-term market stability and growth.
