FIIs Sell, DIIs Buy: Indian Markets See Mixed Flows; Defense, Banking Outlook Positive

• Foreign Institutional Investors (FIIs/FPIs) sold shares worth ₹318 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹1,773 crore on December 26.
• FIIs were net sellers for the third consecutive session, with year-to-date sales reaching ₹2.81 lakh crore against DIIs' ₹7.69 lakh crore purchases.
• Dr. V.K. Vijayakumar suggests strong US market performance (GDP > 4.3% in Q3 2025) and US company profits may lead FIIs to increase selling in India.
• For 2026, defense stocks are seen as profitable, the banking sector is in recovery, but large-cap IT has no high expectations.
• Benchmark indices saw profit booking; Defense index gained over 3%, while IT and Auto sectors declined. Railway stocks rallied ahead of Budget 2026.

Why It Matters: FIIs sell, DIIs buy in Indian markets; US strength impacts FII flow, while defense and banking show promise.