India's FII paradox: $9.2 billion into IPOs, $39 billion pulled from listed stocks

Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Foreign institutional investors poured $9.2 billion into India's primary market over the 12 months to September 2026, while pulling $39 billion from listed stocks.
- ✓JM Financial said, "In September 2026, FIIs were net sellers to the tune of INR 396.6bn." Domestic investors bought shares as the Nifty fell 6.1% that month.
Story at a Glance
- Category
- MARKET
- Reported By
- Financial Express
- Reading Speed
- 5 Minute(s)
- Market Focus
- India Economy
Foreign institutional investors (FIIs) poured $9.2 billion into India's primary market over the 12 months to September 2026, even as they pulled $39 billion out of shares traded on stock exchanges. The divergence captures the split in foreign capital flows, with new share issuances attracting money while the broader listed market faces sustained selling.
According to JM Financial's FII Monthly Flow Tracker - Sep'26, dated October 8, FIIs sold Indian equities worth Rs 39,660 crore in September alone, while domestic institutional investors (DIIs) bought Rs 76,030 crore worth of shares. The Nifty fell 6.1% during the month, after declining 1.2% in August.
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