Adani Block Deal: The Indian stock market’s recent underperformance has largely been driven by sustained foreign fund outflows, reflecting a cautious stance among overseas investors towards domestic equities.
Yet, strong domestic participation has emerged as a key stabilising force. Steady inflows from retail investors, mutual funds and systematic investment plans (SIPs) have helped absorb foreign selling pressure, preventing sharper market declines and supporting equity valuations.
How FII-DII activity impacts Indian equities?
Data highlights the divergence. Foreign institutional investors (FIIs) have withdrawn nearly Rs 3.8 lakh crore from Indian equities over the past year, including Rs 3.28 lakh crore in 2026 so far. In contrast, domestic institutional investors (DIIs) have pumped in Rs 5.75 lakh crore over the last 12 months and Rs 4.18 lakh crore on a year-to-date basis, more than offsetting foreign outflows. (FII DII Data)
Despite this domestic support, the benchmark Nifty 50 has fallen 7.4 per cent over the past year and 11.4 per cent so far in 2026, underscoring the pressure exerted by persistent foreign selling.
Adani Enterprises Block Deal
In Adani Enterprises, the US-based investor sold 1.64 crore shares, representing 1.26 per cent of the company’s equity, at an average price of Rs 2,913.40 per share, translating into a deal value of Rs 4,789.62 crore.
The deals offer a snapshot of the broader market dynamic that has defined Indian equities in recent months: foreign investors continue to pare exposure, while domestic institutions step in to absorb supply.
SBI Mutual Fund’s purchase of the entire stake sold by GQG Partners mirrors the larger trend of DII inflows helping counterbalance persistent FII outflows.
Mixed market reaction to stake sale
The market reaction to the block deals, however, was mixed.
Adani Energy Share Price
Shares of Adani Energy Solutions gained more than 1 per cent following the transaction, indicating positive investor sentiment towards the stock. As of 11:20 a.m., the stock was trading 1.5 per cent higher, up Rs 23.70 at Rs 1,603.15 per share.
Adani Enterprises Share Price
In contrast, Adani Enterprises slipped nearly 1 per cent, falling about Rs 28 to Rs 3,020. The decline came despite SBI Mutual Fund absorbing the entire stake sale and may have been influenced by weaker broader market sentiment, which weighed on investor appetite for the stock.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
