You could call it a tug-of-war. On the day, FIIs net sold Rs 4,447 crore, but DIIs made a point of almost erasing that with their own net buys of Rs 4,360 crore. The result was steady benchmarks, with home-grown capital mopping up some of the risk aversion we see from abroad.
In 2026, the balance of power is being set by these kinds of stand-offs. You have FIIs who are net sellers to the tune of nearly Rs 3.18 lakh crore so far this year, and DIIs who have put in about Rs 4 lakh crore. At the moment, our local institutions are more of a shock absorber than the ones making the market move.
Market snapshot on June 4
All in all, the indices didn’t budge much in the face of foreign selling. The Sensex put in a 13.84-point gain to end at 74,360.01, a 0.02 percent nudge. Nifty was 10.95 points, or 0.05 percent, better off at 23,416.55.
Elsewhere, you saw a bit more of a domestic bent. The Nifty Midcap 100 and Smallcap 100 both put up 0.5 percent, chalking up another day of outperformance over the large-caps.
The numbers from the exchange tell the story. In the course of the session, FIIs bought in Rs 14,013 crore and let go of Rs 18,460 crore. DIIs did the reverse, with Rs 16,824 crore in and Rs 12,464 crore out, which more or less neutralised the overseas side of things.
Some of the highlights:
– Net FII selling: Rs 4,447 crore
– DII net buying: Rs 4,360 crore
– Sensex: 74,360.01
– Nifty: 23,416.55
Why FIIs are staying cautious
There are a few things tugging at global money. Between high US yields, a hard dollar and the AI craze in other markets, allocations have been moved around. Add in some home truths like softening credit, pricey financials and the usual geopolitical noise, and you get the kind of wariness we are seeing.
Financials have felt it the most. In May, FIIs put out Rs 23,141 crore in sales, down from the Rs 30,856 crore in April and the Rs 60,655 crore in March. There were some bright spots in May though – services saw Rs 7,204 crore come in, capital goods Rs 2,799 crore and metals and mining a modest Rs 667 crore.
Speed and scale of outflows
The pace has picked up in 2026. We are looking at a run rate of some Rs 400 crore an hour in the secondary market, double what we had in 2025. In fact, with seven months left on the calendar, overseas investors have already put out more in 2026 than they did in all of 2025.
It has been a long way down for foreign portfolio investments in Indian equities. As of June 1, total FPI holdings were at Rs 7.3 trillion, not seen since 2016. A clear sign of a change in how foreigners are positioned here.
What traders are watching next
Expect the caution to hold until the MPC makes its call. “With weak global cues, crude where it is and risk appetite in flux, you have traders on the sidelines,” says Ajit Mishra, SVP at Religare Broking, “though some buying in the big names has put a floor under it.”
“We are in a tussle for the next Nifty move, and there is a slight negative edge to it,” he said. All eyes will be on the MPC for any word on rates, growth or inflation, especially with the monsoon question mark and an unpredictable world outside.
For now, these are the items on the radar:
– Where the MPC stands on rates and the economy
– Cues from the rest of the world and oil prices
– Whether we see more breadth or just the large-caps leading
The bigger picture for investors
If June 4 is any indication, the DIIs can hold the fort when the FIIs are in sell mode. The flat close and the 0.5 percent you saw in mid and small caps is a testament to that. But whether it holds up will depend on what comes out of policy and if the headwinds from overseas are here to stay.
