Mumbai’s stock market is witnessing a seismic shift as Domestic Institutional Investors (DIIs) cement their dominance, with their shareholding crossing the crucial 20% mark in the Nifty 500 index. A comprehensive report released on Monday underscores this trend, highlighting DIIs’ relentless buying spree that has stabilized the market amid foreign outflows.
In the December 2025 quarter, DIIs pumped a staggering $23.4 billion into Indian equities, contributing to a full-year investment of $90.1 billion. This robust inflow not only offset $18.8 billion in Foreign Institutional Investor (FII) sell-offs but also backed the massive ₹1.95 lakh crore raised by companies through IPOs and follow-on public offers last year.
Since 2021, DII ownership has steadily climbed to 20.6% in the Nifty 500, eclipsing FIIs at 18.4%. Year-on-year, DII stake grew by 2.10%, with a quarterly bump of 0.60%. Conversely, FII holdings dipped 0.50% annually but saw a marginal 0.10% quarterly rise.
Zooming into blue-chips, DIIs hold 24.8% of Nifty 50 stocks as of the latest quarter, just ahead of FIIs at 24.3%. Analysts point out that FII stakes have hit an eight-quarter low, signaling a structural pivot towards domestic capital.
This isn’t a fleeting phase; it’s a fundamental reshaping of India’s investment landscape. Surging SIP inflows totaling ₹3.34 lakh crore in 2025, expanding pension funds, and new asset managers are fueling this domestic boom. Market experts predict sustained DII strength will provide a solid buffer against global volatility, fostering long-term market resilience and growth.