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Below the Weekly FII and DII Commentary for 26th September 2026 by Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking

FII AND DII WEEKLY ACTIVITY: 26-09-26

Benchmark indices witnessed strong selling pressure last week as rising Brent crude oil prices and elevated US bond yields kept investor sentiment cautious. Nifty extended its downtrend and closed lower for the seventh consecutive week. The index started the week on a positive note and moved higher in the first half to form an intra-week high of 23,489. However, a sharp decline in Thursday's session saw it give up its intra-week gains and slip below the previous week's low, with the Nifty ending at 23,140.50, down 0.9%. Bank Nifty also witnessed sharp selling pressure and closed the week 1.4% lower. Broader markets dragged lower as well, with the Nifty Midcap and Smallcap indices down 2.1% and 0.9%, respectively.

On the flows front, FIIs stayed net sellers for the sixth straight week, offloading Rs. 114.90bn. DIIs extended their buying streak with net purchases of Rs. 163.98bn, which cushioned the decline. Month-to-date, FIIs have sold a net Rs. 185.31bn against DII net buying of Rs. 526.17bn, with the Nifty down 3.90% from its August-end close of 24,080.40. Over the past month, FIIs were net sellers throughout all weeks while DIIs remained consistent net buyers, limiting the Nifty's 4.91% slide from 24,334.55 to 23,140.50 (25th Aug - 25th Sept).

Going ahead, if FII selling sustained while global headwinds are likely to keep markets volatile, though steady domestic institutional buying should continue to limit the downside. Market participants will closely monitor Brent crude oil prices, developments in US-Iran geopolitical tensions and US Q2 GDP data as key triggers for market direction in the coming week.

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