Domestic and Foreign Institutional Investors Show Mixed Activity Amid Market Decline

In February 2026, domestic institutional investors (DIIs) reduced equity inflows to a 10-month low amid underwhelming market returns and a shift toward precious metals. Despite a significant single-day DII purchase, markets declined due to broad selling by foreign portfolio investors (FPIs). While DIIs remain net buyers overall, foreign institutional investors (FIIs) showed renewed interest, reflecting a complex interplay influencing Indian stock market trends and investor sentiment.