Mata Securities India Pvt Ltd | SEBI Registered Research Analyst | Reg. No. INH000022668 | SEBI Registered MF Distributor | ARN-0158
June 2026: FPIs Record Highest-Ever Debt Buying but Remain Equity Sellers; DIIs & MFs Deliver Record H1 Support
Record FPI Debt Buying in June as Tax Breaks and RBI Reforms Boost Foreign Appetite: On the debt side, FPIs recorded record inflows of ₹55,518 Cr in June 2026, marking the second consecutive month of positive debt flows. Importantly, inflows were positive across all three routes, with Debt-General Limit attracting ₹30,620 Cr, Debt-VRR ₹3,246 Cr and Debt-FAR ₹21,652 Cr, reflecting broad-based foreign appetite for Indian debt instruments.
FPIs Turn Net Buyers in the Second Half, Raising Hopes of Continued Buying in July: FPIs remained net sellers in Indian equities in June 2026, marking the fourth consecutive month of net outflows, with total equity selling of ₹49,340 Cr. The selling was largely driven by heavy secondary market outflows of ₹53,957.9 Cr, partly offset by primary market/IPO inflows of ₹4,618 Cr. However, the monthly trend showed a notable improvement, with FPIs selling ₹63,450 Cr in the first half before turning net buyers of ₹14,110 Cr in the second half. This sharp reversal towards month-end indicates an improvement in foreign investor sentiment and raises hopes that the buying momentum could continue into July.
H1 CY2026 Records Highest-Ever DII Buying: During H1 CY2026, DIIs infused a record ₹4,60,738 Cr into Indian equities, compared with ₹3.58 Lakh Cr in H1 CY2025, marking the highest-ever DII buying in the first half of a calendar year. Their sustained participation played a crucial role in absorbing record FPI selling, supporting market liquidity and cushioning volatility, reinforcing DIIs as the market’s key domestic anchor.
For a comprehensive understanding and more insights, please go through our detailed report.