{"id":326079,"date":"2026-10-26T10:31:57","date_gmt":"2026-10-26T05:01:57","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=326079"},"modified":"2026-10-26T10:31:57","modified_gmt":"2026-10-26T05:01:57","slug":"why-are-indian-investors-buying-when-foreigners-are-selling-nilesh-shah-says-fpi-selling-dii-buying-2026","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/why-are-indian-investors-buying-when-foreigners-are-selling-nilesh-shah-says-fpi-selling-dii-buying-2026\/","title":{"rendered":"Why Are Indian Investors Buying When Foreigners Are Selling? What Nilesh Shah Says About FPI Selling and DII Buying in 2026"},"content":{"rendered":"

Indian investors buying while foreigners sell is the defining flow story of 2026. FPIs sold a record Rs 3.08 lakh crore of Indian equities in the first nine months of the year, according to NSDL data cited in earlier reports, while domestic institutions bought a net Rs 6.83 lakh crore. Market veteran Nilesh Shah has called the foreign selling a strategic reallocation and not a permanent exit.<\/em><\/p>\n

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Quick Answer<\/strong><\/p>\n

Indian investors buying through domestic institutions and systematic plans has more than absorbed foreign selling in 2026, with DIIs buying about 2.2 times the net FPI selling in the first nine months (my calculation). Nilesh Shah’s earlier comments, reported on 16 Oct, describe FPI selling as a reallocation driven by high US rates and the pull of AI-linked markets, and he points to a double tax on foreign investors from securities transaction tax and long-term capital gains tax. Large and midcap valuations are about 30% below their September 2024 peaks, which supports domestic buying. I could not retrieve his comments of 26 Oct, so this article uses his earlier remarks and the verified flow data.<\/p>\n<\/p><\/div>\n

Indian investors buying has kept the Nifty from falling further, even though it is down about 13.56% for the year. Without domestic flows, a record foreign exit would have hurt prices far more.<\/p>\n

This article explains why Indian investors buying and foreigners selling coexist, what the flow numbers show, what Nilesh Shah has said and what it means for investors. It is educational and not a recommendation to buy or sell.<\/p>\n

Click Here – Get Free Investment Predictions<\/a><\/strong><\/p>\n

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