Domestic Investors Overtake FIIs in Nifty50 Ownership

In a landmark shift for India’s stock market, domestic institutional investors (DIIs) have surpassed foreign institutional investors (FIIs) in their stake within the prestigious Nifty50 index for the first time. This development, highlighted in a fresh report from Motilal Oswal Securities, underscores the growing might of local capital. As of the December 2025 quarter, DIIs commanded a robust 24.8% share of Nifty50, edging out FIIs who held 24.3%. Analysts point to this as a structural pivot. FII holdings have dipped to their lowest in eight quarters, while domestic inflows have surged. This milestone comes after DIIs had already overtaken FIIs in the broader equity market. Key drivers include a staggering ₹3.34 lakh crore poured into Systematic Investment Plans (SIPs) in 2025, alongside rising participation from pension funds and insurance companies. Market experts believe this domestic resilience will hold firm, providing a steady anchor for the market.