New Delhi, Sep 22
Even with a quarter remaining in 2025, domestic institutional investors have net bought a record Rs 5.3 lakh crore of equities, surpassing the full-year total of Rs 5.22 lakh crore in 2024, according to the stock exchange data.
Mutual funds were the largest driver of this buying spree, purchasing Rs 3.65 lakh crore, aided by monthly SIP inflows of more than Rs 25,000 crore, while their cash holdings remained elevated at Rs 1.98 lakh crore in August.
Insurance companies and pension funds added more than Rs 1 lakh crore, with the remainder coming from portfolio managers, alternative funds, banks, and other institutions.
But analysts suggest that early signs of slowdown in momentum are emerging as market returns stagnate and global headwinds weigh on sentiment.
Despite robust inflows from DIIs, Indian equities have lagged global peers, with the Sensex having gained just 2 per cent and the Nifty 4 per cent in 2025 in dollar terms, compared with double-digit advances in major Asian and Western markets.