Foreign Portfolio Investors continued their selling streak on June 10, 2026, offloading shares worth ₹2,124.98 crore in equity markets, according to latest provisional data from stock exchanges. This represents a significant increase from the ₹5,145.88 crore sold on June 9, marking the eleventh consecutive day of foreign selling pressure. The overseas investors have maintained net selling in every month of 2026, barring February when they bought stakes worth ₹22,615 crore aided by improving risk sentiment. The sustained selling comes despite the Reserve Bank of India's recent relief measures on government securities. FPIs have sold Indian equities aggregating up to ₹2.85 lakh crore in 2026 till now, with March posting the highest ever selling at ₹1.18 lakh crore.
Domestic Institutional Investors provided strong support to the Indian equity markets on June 10, staying net buyers and mopping up equities worth ₹3,123.95 crore despite broader market weakness. According to exchange data, DIIs purchased shares worth ₹17,396.40 crore and sold equities worth ₹14,272.45 crore, resulting in a net inflow of ₹3,123.95 crore. However, their overall investment pattern shows significant outflows, with DII pulling out ₹56,384 crore in the month of June and offloading shares worth ₹2.81 lakh crore in 2026. The contrasting investment patterns highlight the divergent sentiment between foreign and domestic investors in the current market environment.
Despite the continued domestic support, broader markets witnessed significant selling pressure on June 10. The BSE Sensex rose 64 points to close at 73,983, while the NSE Nifty 50 fell 27 points to settle at 23,215, slipping below the 23,250 mark during the session. Broader markets witnessed sharper selling pressure, with the Nifty Midcap index declining 905 points to 59,810 and the Nifty Bank index slipping 94 points to 55,100. Market breadth remained weak, with the NSE advance-decline ratio at 1:3, indicating that declining stocks significantly outnumbered gainers.
Sectorally, IT stocks remained under pressure, with the Nifty IT index extending its losing streak to a sixth consecutive session. All constituents of the index ended lower except TCS. Metals and several heavyweight stocks also weighed on investor sentiment. Adding to the cautious mood, the Indian rupee appreciated 14 paise to close at 95.27 against the US dollar. The latest fund flow data suggests domestic institutions continued to provide support to the market despite persistent foreign selling and weakness across broader market segments.
Last week, the Reserve Bank of India announced the investment limits for Foreign Portfolio Investors (FPIs) in government securities and state development loans (SDLs) for fiscal year 2027, providing overseas investors with a larger investment window in India's debt market. According to the central bank's notification, FPIs will be permitted to invest up to ₹4.62 trillion in Government Securities (G-Secs) during the first half of FY27, covering the April-September 2026 period. For State Development Loans, which are bonds issued by state governments, the investment limit for foreign investors has been fixed at ₹1.53 trillion for the same period. The RBI has also outlined higher limits for the second half of the financial year, with FPIs investment cap in government securities increased to ₹4.77 trillion for the October 2026-March 2027 period.
