DII Inflows Hit ₹5,225 Cr as Banks, IT Counter FII Exodus

Domestic Capital Steps Into The Breach India's equity markets found their unlikely saviors on March 17, as domestic institutional investors (DIIs) deployed a commanding ₹5,225 crore in fresh capital, nearly matching the ₹4,741 crore exodus by foreign institutional investors (FIIs). This marked another chapter in what has become the defining narrative of Q1 2026: a sustained tug-of-war between fleeing foreign capital and increasingly assertive domestic money. The scale of this capital rotation has reached historic proportions. Foreign investors have pulled out a staggering ₹90,561 crore from Indian equities in the first quarter alone, yet benchmark indices have demonstrated remarkable resilience. The secret weapon? Domestic institutions—mutual funds, insurance companies, and pension funds—have consistently stepped up as buyers of last resort, transforming what could have been a market rout into a managed retreat. Banking Giants Lead the Domestic Charge The day's buying pattern revealed the strategic thinking behind domestic institutional flows. NSE: HDFCBANK and NSE: ICICIBANK emerged as primary beneficiaries, with DIIs treating the FII-induced weakness as a buying opportunity in India's largest private sector lenders. These stocks, trading at price-to-book ratios of 2.1x and 2.8x respectively, represent compelling value for long-term domestic investors who understand the structural growth story better than their foreign counterparts. NSE: SBIN also witnessed significant accumulation, with domestic funds apparently viewing the public sector banking leader's current valuation multiples as attractive entry points. The bank's improving asset quality metrics and robust credit growth trajectory have made it a favorite among domestic fund managers who maintain a constructive view on India's banking sector fundamentals. The technology space told a similar story, with NSE: TCS receiving substantial DII support despite continued FII selling pressure. India's largest IT ...