July 9, 2026
Foreign Institutional Investors (FIIs) extended their buying streak in the cash market on July 8, purchasing Indian equities worth ₹1,963 crore, even as they maintained a strongly bearish stance in the derivatives segment.
According to the latest market data, FIIs have remained net buyers in the cash market for four consecutive trading sessions, recording inflows of ₹243 crore on July 6, ₹393 crore on July 7, and ₹1,963 crore on July 8 after buying ₹1,355 crore on July 3.
However, institutional positioning in index futures continues to signal caution. FIIs' net short contracts widened to 2,68,586 contracts on July 8, compared with 2,38,838 contracts a day earlier. Their long-short ratio also declined to 9.19%, indicating that bearish derivative bets remain elevated despite continued cash market accumulation.
Domestic Institutional Investors (DIIs) also remained active buyers, adding ₹790 crore worth of equities on July 8. Earlier this month, DIIs made substantial purchases of ₹3,791 crore on July 6, helping cushion volatility triggered by foreign fund outflows in previous sessions.
Institutional Flow Snapshot
- FIIs Cash Market (July 8): +₹1,963 crore
- DIIs Cash Market (July 8): +₹790 crore
- FII Net Index Futures Position: -2,68,586 contracts
- FII Long-Short Ratio: 9.19%
The divergence between cash market buying and derivatives positioning suggests that foreign investors continue to selectively accumulate Indian equities while maintaining downside hedges against near-term market volatility. Market participants will closely monitor whether sustained institutional inflows translate into stronger sentiment as geopolitical developments and global macroeconomic risks continue to influence investor positioning.
