FII selling eases after $60 billion exodus. Is the tide finally turning for Indian stock markets?

Foreign institutional investors (FIIs) have pulled out more than $60 billion from Indian equities since the September 2024 peak, but the pace of selling eased materially in June 2026 following the US-Iran ceasefire and decline in crude oil prices. FII flows turned net positive at $1.3 billion in the second half of June 2026, compared to outflows of $4.3 billion in the first half, though June saw overall net outflows of $5.2 billion. Domestic institutional investors absorbed record inflows of $162 billion during October 2024-June 2026, with DII ownership in Nifty-500 rising to an all-time high of 20.9% versus FII holdings at a record low of 17.1%, signalling a structural shift in Indian market ownership.