Summary:
Foreign portfolio investors (FPIs) reduced holdings in 30 Nifty 50 companies during Q2FY27, lowering average ownership to 19.43%. Domestic institutional investors (DIIs) increased their average stake to 25.24%, offsetting some foreign selling as investors shifted exposure across sectors and stocks.
Foreign portfolio investors (FPIs) sold stakes in 30 of the 50 Nifty companies in the September 2026 quarter, pointing to continued selling pressure in Indian equities. Their average holding declined to 19.43% in September from 19.57% in June. Domestic institutional investors (DIIs) increased their overall holdings even as they reduced stakes in several individual companies.
FPIs Cut Holdings in Top Nifty Firms
As per the September quarter shareholding data, foreign investors trimmed their exposure to banking, automobile and financial services companies.
The highest reduction in FPI stake among the highlighted companies was in BSE Ltd , which saw a decline of 4.22 percentage points to 17.10%, compared with 21.32% in June.
Foreign holding in Axis Bank declined by 1.86 percentage points, while HDFC Bank witnessed a reduction of 2.10 percentage points.
Other companies that recorded a decline in FPI holdings included Tata Motors Passenger Vehicles and Mahindra & Mahindra.
FPI Shareholding Key Changes:
| Company | June 2026 | Sept 2026 | Change |
| BSE | 21.32% | 17.10% | -4.22 pp |
| HDFC Bank | 36.26% | 34.16% | -2.10 pp |
| Axis Bank | 39.91% | 38.05% | -1.86 pp |
| Tata Motors PV | 17.11% | 15.32% | -1.79 pp |
| M&M | 34.30% | 32.77% | -1.53 pp |
pp = percentage points.
What Companies Drew Foreign Investors?
Foreign investors were selective and did not reduce exposure to every large company.
FPI ownership in Eternal increased by 4.03 percentage points to 31.46% from 27.43%.
Tech Mahindra followed with a rise of 2.11 percentage points to 20.77%. Foreign ownership in Adani Enterprises increased to 10.66% from 8.77%.
Foreign shareholding in Apollo Hospitals and Nestle India also increased by 1.68 and 1.40 percentage points, respectively.
DIIs Increase Total Holdings Despite Selective Selling
Domestic institutions continued increasing their presence in Indian equities. Their average ownership rose to 25.24% from 25.06% quarter-on-quarter (QoQ), although they reduced stakes in 20 Nifty companies.
Eternal recorded the largest decline in DII ownership at 3.10 percentage points, followed by Apollo Hospitals (-1.65 pp) and Tech Mahindra (-1.24 pp).
Meanwhile, domestic institutional ownership increased in Axis Bank (+1.87 pp), BSE (+1.74 pp), M&M (+1.55 pp), Eicher Motors (+1.54 pp) and HDFC Bank (+1.49 pp).
Retail investor holdings also increased to 7.27% from 7.23%, while average promoter holding declined marginally to 40.23% from 40.30%.
Why Did Stocks Decline Despite Domestic Buying?
Quarterly changes in shareholding are not directly linked to movements in individual stock prices. However, when domestic buying is insufficient to absorb foreign selling, continued FPI outflows can put pressure on stock prices.
The broader foreign selling continued into October. On October 26, FPIs sold equities worth ₹1,462.49 crore, while DIIs purchased shares worth ₹2,609.57 crore.
Despite foreign selling, the Nifty 50 snapped its four-day losing streak, gaining 153.20 points (+0.68%) to close at 22,753.20.
What Does It Mean for Indian Markets?
The September quarter shareholding data highlights the growing difference between foreign and domestic institutional positioning.
Despite the decline in overall FPI ownership, domestic institutions continued absorbing part of the selling pressure. The changes also indicate that foreign investors maintained interest in select technology, healthcare and consumer-facing businesses.
Corporate earnings, valuations, global interest rates and foreign capital flows will determine future ownership trends. For now, domestic institutions remain an important counterweight to overseas selling in Indian equities.
