Domestic institutional investors (DIIs) emerged as a key counterweight to foreign selling in Indian equities in fiscal 2026, with their purchases reaching a record Rs 8.09 lakh crore. Against this, foreign institutional investors (FIls) sold Rs 1.81 lakh crore during the year. DIIs therefore invested about 347 percent more than the amount sold by FIls, effectively absorbing the foreign outflows and highlighting the growing weight of domestic capital in the market. The AMFI-Crisil Factbook 2026 describes this as 'remarkable resilience' among DIIs, led by mutual funds. It says the domestic institutions effectively absorbed the Rs 1.81 lakh crore sold by Flls. The report argues that this growing domestic pool is changing the way Indian equities respond to global capital flows, with local institutions increasingly able to cushion periods of foreign selling.