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Below the Quote on Weekly FII and DII Commentary for 12th September 2026 by Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking

FII AND DII WEEKLY ACTIVITY: 12-09-26

FIIs stayed on the sell side for a third consecutive week during last week, offloading Rs 56.1 billion worth of Indian equities, while DIIs extended their buying streak with net purchases of Rs 231.6 billion.

Benchmark indices faced strong selling pressure last week as Brent crude surged to $109.97/bbl on Friday and sustains above $102/bbl, a July-high level, amid heightened geopolitical uncertainty. Rising bond yields and a high probability of a rate hike at the US FOMC meeting in the coming week weighed on investor sentiment. Nifty closed lower for the fifth week in a row. It started the week on a negative note and dragged lower as the week progressed to form an intraweek low of 23,231 in Friday's session. However, buying demand at lower levels saw the index closing the week off the lows at 23,398.1 levels, down by 2.1%. Bank Nifty also witnessed selling pressure and closed the week down by 1.3%. The broader market also witnessed profit booking at higher levels, with the Nifty Midcap and Smallcap indices closing lower by 1.4% and 0.9% respectively.

On the flows front, FIIs ended the week as net sellers for the fourth consecutive week, offloading Rs. 17.95bn, with four of the five sessions closing in the red. DIIs stayed on the buy side, extending their streak with accumulation of Rs. 64.19bn, though this was a sharp step down from the Rs. 231.56bn deployed the previous week — and the support was not enough to arrest the slide, with the index falling even on Friday, when DII buying peaked at Rs. 19.68bn against the week's largest FII sale of Rs. 9.31bn. Month-to-date, FIIs remain marginal net buyers at Rs. 5.79bn, a figure resting entirely on the Rs. 66.88bn inflow of Sep 2; excluding that single session, they are net sellers of Rs. 61.10bn. DIIs have bought Rs. 249.87bn across all nine sessions, taking combined institutional inflows to Rs. 255.66bn, even as the Nifty shed 682.3 points or 2.8% from its August close of 24,080.4, with seven of the nine sessions negative. Over the last five weeks, FIIs were net buyers only in the first (Aug 10–14) before turning net sellers in each of the four that followed, while DIIs have bought without a break since Aug 11, a run of 24 sessions. The index has nonetheless fallen in every one of those weeks, with 18 of 24 sessions ending lower — indicating that domestic absorption has cushioned rather than countered the downtrend.

Going ahead, market participants will closely monitor Brent crude oil prices, developments in the US-Iran geopolitical tension, and the upcoming FOMC rate decision. Domestically, India's CPI inflation data will remain a key trigger for market direction and institutional flows.

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