Despite global tensions and rising crude prices, Indian domestic institutional investors have continuously bought Indian equities over the past month, offsetting foreign sell-offs and maintaining market resilience in 2026.
Domestic institutional investors have now been net buyers in every week of the past month, underlining the steady support that local money has provided to Indian equities even as overseas sentiment has wavered. According to market analysts, domestic funds bought ₹38,715.18 crore over that period, while foreign investors, after a stretch of heavy selling, have begun to rebuild positions. In August so far, foreign investors have bought more than ₹4,115.93 crore, compared with domestic purchases of ₹17,053 crore, pointing to a firmer tone from abroad.
That shift has not been enough to erase earlier weakness. Pabitro Mukherjee of Bajaj Broking said foreign investors sold heavily in the first half of the recent stretch, helping drag the Nifty down to 23,767.45 before buying resumed from July 28. The index then recovered to 24,774.30 by August 3. Even so, Mukherjee said the running total remains in negative territory at ₹3,173.68 crore, showing that a few weeks of inflows have not fully offset the earlier outflows.
The latest week ended with foreign investors as modest net buyers of ₹1,228.24 crore, although the pattern was uneven, with purchases on two sessions, selling on two, and buying again on the final trading day. Ajit Mishra of Religare Broking said markets still closed lower as rising crude prices, renewed geopolitical tension and mixed global cues kept pressure on sentiment. The Sensex fell 0.62% to 78,009.25, while the Nifty dropped 0.83% to 24,366.
Broader market data suggest the clash between domestic confidence and foreign caution has defined 2026 so far. Reports from Kalkine and The Economic Times said domestic institutions have already bought more than ₹4.16 lakh crore of Indian equities this year, while foreign investors have sold about ₹2.7 lakh crore. The same reports linked resilient systematic investment plan inflows and strong local demand to the market’s ability to absorb foreign selling, even as investors continue to watch crude prices, inflation risks and the final phase of the first-quarter earnings season for the next cue.
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