India Flow Trails: June‘26: DII Flows Rebound

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India Flow Trails: June‘26: DII Flows Rebound

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India Flow Trails

June’26: DII Flows Rebound

Equity Strategy

DII flows rebound on weak base but still below average 12 July 2026

DII flows increased to US$5bn in Jun’26 (vs. US$3bn in May’26), an increase of 71% MoM, Equity Strategy

however, the sharp rebound was on a weak base, and June flows remain below FY26 average India

of US$5.3bn. This slowdown is noteworthy as DII’s have remained a key offset to over

US$29bn of FII outflows CY26TD. While the May-June period is typically seasonally softer, Amish Shah, CFA >> Research Analyst

sustained weakness should indicate moderation in domestic risk appetite. BofAS India

+91 22 6632 8656

DII inflows across funds: DII flows reflected a broad-based sequential rise across shah.amish@bofa.com

categories; Dynamic Asset Allocation registered 207% inflows while large cap/Mid Cap/Small Udit Dhekale >> Research Analyst

Cap funds saw inflows of -31%/40%/14%. Passive flows saw subnational inflow rising from BofAS India

udit.dhekale@bofa.com

+US$0.114bn to USD1.4bn, reflecting broad based participation.

Manya Kakkar >>

SIP inflows: SIP inflows increased by 2.7% MoM to US$3.3bn in June’26 (vs US$3.2bn in ResearchBofAS IndiaAnalyst

May’26). manya.kakkar@bofa.com

Rithik Dhiman >>

US$5.1bn FII outflows in June; valuation premium weighs ResearchBofAS IndiaAnalyst

FII flows recorded outflow of -US$5.1bn in June’26, rising from an outflow of -US$3.4bn in rithik.dhiman@bofa.com

May’26. We expect FII flows to remain muted through CY26, as the risk-reward for India

remains unfavorable given the modest earnings growth expectation (FY27 Nifty Earnings

~8.5% (vs. 14% pre-conflict), elevated geopolitical uncertainty & an absence of AI-led growth Abbreviations:

driver.