FIIs sell nearly Rs 3 lakh crore of Indian equities in 2026
Foreign institutional investors have reduced holdings in 21 Nifty stocks across the first three quarters of the year, according to the Economic Times.
Foreign institutional investors (FIIs) have sold almost Rs 3 lakh crore of Indian equities during this calendar year, according to the Economic Times. An analysis of Nifty shareholding patterns shows that 21 out of 50 stocks saw FII ownership decline in each of the first three quarters of 2026, covering March, June, and September.
The largest drop in FII ownership occurred in Max Healthcare, where stakes fell by 10 percentage points. Other significant declines were recorded in HDFC Bank at 8.3 percentage points, HDFC Life at 5.5 percentage points, InterGlobe Aviation at 5.1 percentage points, and Kotak Mahindra Bank at 4.7 percentage points.
In the September quarter, FIIs reduced holdings in 70 per cent of Nifty 50 companies on a year-on-year basis. This caused FII ownership in the index to drop to 22.4 per cent, a decrease of 230 basis points from a year earlier.
Domestic institutional investors (DIIs) have moved in the opposite direction, with DII ownership in the Nifty 50 rising to a record 26.2 per cent. Motilal Oswal reported that DIIs increased their stakes in 82 per cent of Nifty 50 companies on a year-on-year basis.
Motilal Oswal noted that FIIs have ramped up selling due to negative global news and events, even as they direct more capital into the primary market. Quest Investment Managers stated that India offers a diversified sector mix compared to the concentrated semiconductor and AI-linked companies in Taiwan and Korea.