Mumbai, Aug 14
Even as foreign institutional investors (FII) continue to sell Indian equities, the stock markets are holding strong due to significant buying from domestic institutional investors (DIIs) and retail investors.
The secondary market outflows by FIIs in 2025 saw the highest level of foreign selling in India's markets to date. However, domestic institutional investors (DIIs) have pumped in over Rs 4 lakh crore into the Indian stock market this year, the largest inflow by this category in the cash market during the first seven months since 2007.
In just seven months of 2025, DIIs accounted for over 80 per cent of total inflows for 2024, providing essential support to the market. DII inflows YTD in 2025 reached 2.2 per cent of the average Nifty market capitalisation, marking the highest level since 2007.
This is a significant increase from 1.4 per cent in 2024 and significantly higher than the 0.6 per cent recorded in 2023.
Indian retail investors also remain unfazed. They invested a whopping Rs 427 billion ($4.9 billion) into equity mutual funds in July. Equity mutual funds saw the highest inflow during July, even as foreign funds withdrew $3 billion in the same month.