Month: April 2026

March 2026: FPIs Witness Record Equity Selling, While DIIs & Mutual Funds Surpass Their Previous Buying Record of October 2024

March 2026 Sectoral Rotation: Financials and Autos See Heavy Selling Pressure; FPIs Stay Selective in Capital Goods

Financial Services Leads the Selloff; Autos, Construction and Defensives Also Under Pressure: On the selling side, Financial Services remained the biggest drag by a wide margin, witnessing massive outflows of ₹60,655 Cr, with selling persisting across both halves of the month at ₹31,831 Cr and ₹28,824 Cr, respectively. Automobile saw the second-highest outflows at ₹12,498 Cr, with selling intensifying sharply in the second half to ₹7,691 Cr from ₹4,807 Cr in the first.

Construction too remained under pressure, with net outflows of ₹9,154 Cr, including a sharper ₹6,179 Cr selloff in the latter half. Among other sectors, Telecommunication (₹5,603 Cr), FMCG (₹5,419 Cr), Realty (₹4,693 Cr), Healthcare (₹4,638 Cr) and Oil & Gas (₹4,129 Cr) also saw persistent selling, reflecting a broad-based foreign retreat across both cyclicals and defensive segments in March.

Capital Goods Emerges as the Only Meaningful Buying Pocket – FPI buying in March 2026 was extremely selective, with Capital Goods emerging as the only sector to witness net inflows of note at ₹3,148 Cr. Buying, however, was largely front-loaded, with strong inflows of ₹3,897 Cr in the 1st–15th March, followed by net selling of ₹749 Cr in the 16th–31st March, indicating that even in their preferred capex-linked segment, foreign investors turned more cautious toward the latter half of the month. The overall pattern suggests that while FPIs retained some preference for the domestic capex theme, broader risk appetite remained weak in March.

For a comprehensive understanding and more insights, please go through our detailed report.

Mutual Fund Industry AAUM Surges to a Record ₹81.54 Lakh Crore Despite Q1 CY26 Equity Market Turbulence

Fresh Peak for Average AUM on Strong Inflows & SIP Momentum: Despite the sharp selloff in equity markets and persistent global uncertainties, the mutual fund industry’s Average AUM rose to a record ₹81.54 lakh crore in the January–March 2026 quarter, reflecting a strong 20.36% YoY growth and a 0.65% QoQ increase. During the quarter, mutual funds invested around ₹1.5 lakh crore, underscoring continued confidence in the market despite near-term volatility. The robust growth in AAUM highlights the industry’s resilience, supported by strong inflows, rising retail participation, and steady SIP momentum, which continues to strengthen long-term investing behaviour. The sequential rise in AAUM also reflects the mutual fund industry’s expanding footprint and growing relevance in India’s evolving investment landscape.

SBI MF Retains Top Spot: SBI Mutual Fund continued to hold its leadership position with an AAUM of ₹12.48 lakh crore in the January–March 2026 quarter, remaining largely stable after touching a record ₹12.49 lakh crore in the previous quarter. This also marks the 25th consecutive quarter of SBI MF retaining its position as India’s largest fund house, highlighting strong and sustained investor confidence in the franchise. Notably, SBI Mutual Fund and ICICI Prudential Mutual Fund remain the only two AMCs in India with an Average AUM exceeding ₹11 lakh crore.

AAUM Growth Leaders Shine in Q1CY26: The mutual fund industry’s leading players delivered a healthy performance in the January–March 2026 quarter, with ICICI Prudential Mutual Fund posting the highest absolute increase in Average AUM at ₹27,371 crore. The quarter also saw strong traction across other prominent fund houses, as Nippon India, Kotak Mahindra, PPFAS and Zerodha Mutual Fund emerged as notable contributors to the industry’s overall AAUM expansion. Their performance highlights the continued strength of select franchises in attracting investor flows despite a volatile market backdrop.

Rankings Hold Firm, Top 10 Sees a Shift: The mutual fund industry continued to exhibit strong structural stability in the January–March 2026 quarter, with the top 3 as well as the top 8 fund houses retaining their positions for the 19th consecutive quarter. However, the top 10 rankings witnessed a notable change, as DSP Mutual Fund re-entered the list by overtaking Mirae Mutual Fund, which moved out of the top 10 by Average AUM.

Rising AMCs Gain Ground: Several fund houses improved their standings in the January–March 2026 quarter, with Abakkus, Jio BlackRock, Zerodha, WhiteOak and Helios Mutual Fund moving up the rankings, indicating steady progress over previous quarters. The standout development was Abakkus Mutual Fund, which made its debut through NFO launches during previous quarter, built an AAUM of ₹3,129 crore, and closed the period at 41st position among 51 AMCs.

For a comprehensive understanding and more insights, please go through our detailed report.