DIIs lead FPIs six quarters running

A quiet power shift is reshaping India’s equity market. For six straight quarters, domestic institutions have held a larger share of listed stocks than foreign investors, marking the first sustained reversal in decades and signalling a market now driven by local money.

- Mayur Bhalerao [e-mail]

Data from CMIE covering over 4,000 listed firms shows that the value-based share of domestic institutional investors (DIIs) in Indian equities hit a record 18.4% in the September 2025 quarter, up from 18% a quarter ago and 16.7% a year earlier. This marks the sixth straight quarter, since March 2024, that DIIs have maintained a clear lead over foreign portfolio investors (FPIs).

DIIs include mutual funds, financial institutions, banks, insurance companies, and provident and pension funds.

“This steady climb in DII ownership shows that Indian households are increasingly trusting professional fund managers with their savings,” said Ajit Mishra, senior VP, research at Religare Broking. “It reflects a maturing investment culture—systematic investing through SIPs is replacing speculative trading. DIIs are no longer just passive absorbers of volatility; they are setting the market tone.”

It reflects how India’s deepening pool of household wealth—channelled through mutual funds, insurers and pension schemes—is emerging as the market anchor.