A pivotal transformation is underway in Indian stock exchanges, with Domestic Institutional Investors (DIIs) surpassing 20% ownership in the Nifty 500, as revealed in Monday’s key report. This milestone reflects years of consistent accumulation, bolstering market confidence.
Motilal Oswal’s insights show DIIs invested $23.4 billion in the final 2025 quarter, totaling $90.1 billion for the year. Such firepower neutralized $18.8 billion FII outflows and supported ₹1.95 lakh crore in IPO/ FPO fundraising.
DII stake in Nifty 500 reached 20.6%, gaining 2.10% annually and 0.60% quarterly. FIIs, at 18.4%, saw yearly erosion of 0.50% but quarterly gains of 0.10%. In Nifty 50, DIIs edge out with 24.8% against 24.3% for foreigners by end-2025.
Analysts hail this as a structural change, not transient. FII holdings languish at eight-quarter lows, while domestic momentum builds on ₹3.34 lakh crore SIPs, pension fund expansion, and new AMCs in 2025.
The implications are profound: DIIs now act as market anchors, mitigating volatility from global cues. This shift empowers India’s capital markets, encouraging more inclusive growth and positioning domestic savers at the heart of wealth creation.