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Nifty Plunges 13% in 2026 as FIIs Drive Massive September Sell-Off
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Moneycontrol•01-10-2026, 19:07
Nifty Plunges 13% in 2026 as FIIs Drive Massive September Sell-Off
- •Foreign institutional investors (FIIs) sold a net Rs 44,013 crore of Indian equities in September, accounting for 11% of their year-to-date net outflow of Rs 4.03 lakh crore.
- •Nearly two-thirds of September's outflow (Rs 29,175 crore) occurred in the final four trading sessions, with Rs 10,148 crore sold on September 30, the largest single-day outflow since March 23.
- •The Nifty closed September down 6.1%, its weakest September performance since 2018, leading to a nearly 13% year-to-date decline, putting it on track for its worst annual performance since 2011.
- •Domestic institutional investors (DIIs) remained net buyers throughout September, accumulating Rs 76,030 crore, which more than offset foreign selling and kept combined institutional flows positive.
- •Elevated crude prices, higher US bond yields, and persistent foreign selling weighed on sentiment, though domestic SIP inflows continue to provide a stabilizing force, absorbing FII distribution.
Key Questions Answered
Foreign institutional investors sold a net Rs 44,013 crore of Indian equities in September 2026, which accounted for roughly 11% of their total year-to-date net outflow of about Rs 4.03 lakh crore.
Domestic institutional investors remained net buyers on every single trading session of September 2026, accumulating a total of Rs 76,030 crore to more offset foreign selling.
Market sentiment through September 2026 was weighed down by elevated crude prices, higher US bond yields, and persistent foreign selling.
