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Below the Weekly FII and DII Commentary for 17th October 2026 by Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking

FII AND DII WEEKLY ACTIVITY: 17-10-26

Benchmark indices rebounded strongly last week, with the Nifty extending its recovery for a second straight week. A firmer rupee and easing US 10-year Treasury yields supported sentiment, though Brent crude holding near $105 per barrel kept inflation and external-risk concerns in focus. After a weak start, the Nifty found buying support near the 22,300 level and gathered momentum through the week. It closed above 23,000 on Friday at the week's high of 23,146.15, up 2.8% week-on-week.

On the flows front, FIIs remained net sellers for the ninth straight week. However, selling eased sharply to Rs. 89.91bn from Rs. 302.94bn in the previous week, and FIIs turned net buyers of Rs. 11.66bn on Friday. DIIs stayed net buyers for a ninth consecutive week at Rs. 78.13bn, though they were net sellers of Rs. 36.61bn on Friday. Month-to-date, DII net buying of Rs. 481.68bn has almost fully absorbed FII net selling of Rs. 487.69bn. Over the same period, the Nifty is up 2.3% from its September-end close of 22,620.45 and 4.1% above its October 8 closing low of 22,231.80.

Going ahead, the sharp moderation in FII selling and Friday's reversal in flows suggest sentiment is stabilising, though elevated crude keeps the recovery vulnerable. Investors will track Brent crude and US–Iran developments, while domestic focus stays on Q2FY27 earnings and the RBI MPC minutes due mid-week, which should shed light on the 4-2 split over the shift to a calibrated-tightening stance.

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