Foreign institutional investors became net buyers on September 18, purchasing ₹599.54 crore in equities. Domestic institutional investors continued to support the market with net purchases of ₹1,019.69 crore. While FIIs remain net sellers for the month, local buying has provided a buffer for Indian stocks, helping indices like the Nifty 50 close higher.
On September 18, 2026, foreign institutional investors (FIIs) shifted to net buyers in the Indian stock market, purchasing a net of ₹599.54 crore worth of shares in the cash market. This reversal in trend, following a period of selling earlier in the month, was complemented by domestic institutional investors (DIIs), who bought a net of ₹1,019.69 crore. This consistent activity from local funds has been a major pillar of stability for Indian equities throughout September.
Monthly Flows and Market Performance
Despite the positive inflow on September 18, the broader monthly trend shows that foreign investors remain net sellers of approximately ₹7,041 crore in September. Domestic institutions have acted as a necessary counterweight, having invested roughly ₹36,219 crore during the same period. This domestic liquidity has helped keep equity indices resilient despite the net outflows from foreign participants.
The Nifty 50 rose 0.3% to close at 23,346, marking its third consecutive day of gains. Broader indices showed more strength, with the Nifty Midcap 100 rising 1.2% and the Nifty Smallcap 100 gaining 1.7%. Market volatility also cooled down, with the India VIX declining 7.5%. In sectoral performance, cement, metals, and media stocks led the gains. Conversely, information technology shares faced pressure, largely due to concerns over high global bond yields and US monetary policy.
Key Variables to Track
Looking ahead, investors are focusing on several macroeconomic factors that could influence future capital flows. Lower crude oil prices from recent highs and moderating US Treasury yields have provided some relief to emerging markets. However, Brent crude oil prices staying above US$100 per barrel and ongoing geopolitical tensions remain risks. Changes in global bond market movements will also be critical for foreign investment patterns.
In the coming days, the market will monitor domestic economic indicators, including the September flash purchasing managers' index (PMI), August infrastructure output data, foreign exchange reserves, and bank credit growth. Globally, updates on US industrial production, consumer sentiment, and interest rate decisions from China will be important for assessing the direction of the market.