Foreign institutional investors (FIIs) became net buyers in the Indian equity markets this week, acquiring Rs 4,670 crore, while domestic institutional investors (DIIs) also bought Rs 8,280 crore. Mutual fund systematic investment plan (SIP) contributions hit a three-month high of Rs 31,780 crore in June, as per data from the Association of Mutual Funds in India (AMFI).
The SIP contributions showed a 2.7% increase from May to June, reaching Rs 30,950 crore, and a 16.5% surge from June 2025’s Rs 27,270 billion, according to analysts. Benchmark Indices ended a four-week winning streak with high volatility, closing slightly lower last week. Nifty began positively, hitting an intra-week high of 24,530 on Tuesday.
However, midweek geopolitical tensions between the US and Iran led to a sharp decline, erasing recent gains with an intra-week low of 23,805 on Wednesday. The index rebounded in the week’s last two sessions to close around 24,200 levels, down by 0.3%. Policy improvements for foreign debt investors and foreign currency flow initiatives have enhanced investor confidence, analysts noted.
Foreign institutional investors (FIIs) were net sellers ($3 billion) in June, contrasting with domestic institutional investors (DIIs) who were net buyers ($9 billion) in the Indian equity market. Over the past year, Indian primary markets saw FII net inflows of $8.1 billion, while secondary markets experienced FII net outflows of $49.3 billion, according to JM Financial Institutional report.
