Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) continue to shape daily and monthly liquidity trends in the Indian equity market. Their trading behavior is closely watched as it often reflects broader sentiment, risk appetite, and expectations around economic and global conditions.
Month-to-Date Snapshot (December 2025)
December has opened with persistent FII selling pressure. Month-till-date, FIIs have recorded net outflows of ₹18,491 crore, driven by higher gross sales against purchases. In contrast, DIIs have stepped in firmly with net inflows of ₹36,101 crore, once again acting as a stabilizing force.
Daily data highlights the trend:
FIIs have been net sellers every single trading day from 1 to 11 December.
Daily net outflows ranged between ₹438 crore and ₹3,760 crore, signaling sustained profit-booking or risk-off positioning.
DIIs have countered this behavior with consistent daily net buying, with inflows as high as ₹6,224 crore on 9 December.
This continual DII support suggests long-term domestic confidence despite short-term global uncertainties felt by FIIs.
Historical Trend: January 2024 – November 2025
A broader look at historical monthly data shows a clear pattern:
FIIs: A Year of Volatility
FIIs have reported frequent and sizeable outflows, especially in months like
January 2025 (–₹87,375 crore)
February 2025 (–₹58,988 crore)
August 2025 (–₹46,903 crore)
September 2025 (–₹35,301 crore)
Only a few months saw meaningful positive FII flows, such as
June 2025 (+₹7,489 crore)
March 2025 (+₹2,014 crore)
The trend indicates FIIs remain highly sensitive to global cues — US yields, geopolitical risks, currency volatility, and shifting risk preferences.
DIIs: Consistent Market Support
DIIs have shown strong and steady net buying across almost all months.
Major inflow periods include
August 2025 (+₹94,829 crore)
January 2025 (+₹86,592 crore)
October 2024 (+₹107,255 crore)
This behavior underlines domestic confidence driven by SIP flows, insurance inflows, and broader belief in India’s long-term economic fundamentals.
What These Flows Indicate
1. FIIs are cautious
The repeated selling suggests:
Global risk factors are outweighing local growth optimism.
Short-term market corrections or valuation concerns may be prompting repositioning.
2. DIIs are supporting the market
Strong DII buying implies:
Continued participation from retail and domestic institutions.
Preference for accumulating equities at dips.
3. Markets remain resilient
Despite FII withdrawals, the Indian market has historically held firm when DIIs aggressively step in. This dual-force dynamic often reduces volatility and keeps long-term trends intact.
Outlook
If FII selling persists, near-term volatility may rise; however, DII inflows can continue to stabilize the market.
A reversal of global risks — such as lower US yields or improving global sentiment — may bring FIIs back as net buyers.
Domestic liquidity remains a strong backbone, making India comparatively better positioned than many global peers.
