Domestic Investors on Rise as Foreigners Retreat from Indian Markets

Foreign investors are scaling back their stakes in major Indian companies, while domestic investors are increasingly strengthening their presence. A report from Motilal Oswal Financial Services indicates that in June alone, Foreign Institutional Investors (FIIs) reduced their stakes in nearly 40 of the 50 companies listed under the Nifty 50 index, whereas Domestic Institutional Investors (DIIs) increased their holdings in 44.

The report elaborates, "DIIs raised their stakes in 44 Nifty-50 companies, while FIIs reduced their stakes in 40 Nifty-50 companies". It also notes that, on a quarter-on-quarter basis for the first quarter of the current financial year, DIIs enhanced their holdings in 34 companies, while FIIs cut back in 28.

In June 2025, overall DII ownership reached an all-time high of 19.4%, increasing by 170 basis points year-over-year. Meanwhile, FII ownership decreased to 18.8%, reflecting a drop of 20 basis points YoY. Promoter holdings hit an unprecedented low of 49.3% due to a buoyant primary market. Retail holdings remained stable at 12.4%, with no significant quarterly changes. The dynamics of FIIs and DIIs investments continued to shift, reflecting broader market trends.

(With inputs from agencies.)