FIIs Continue Net Selling Indian Shares Amid Geopolitical Risks; DIIs Offset Some Outflows

Foreign institutional investors (FIIs) have continued to sell Indian equities in early 2026, offloading Rs 22,530 crore in the first fortnight of January amid tariff uncertainties, geopolitical tensions, and high valuations. On January 16 alone, FIIs net sold Rs 4,346 crore, while domestic institutional investors (DIIs) net bought Rs 3,935 crore. Despite FII outflows, positive Q3 earnings from IT and banking sectors have supported market sentiment, with DIIs offsetting some foreign selling through net purchases.