{"id":55949,"date":"2025-05-05T17:30:00","date_gmt":"2025-05-05T12:00:00","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=55949"},"modified":"2025-07-24T18:39:01","modified_gmt":"2025-07-24T13:09:01","slug":"diis-hit-rs-69-8-lakh-cr-surpass-fiis","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/diis-hit-rs-69-8-lakh-cr-surpass-fiis\/","title":{"rendered":"DIIs Hit Rs 69.8 Lakh Crore Mark, Surpass FIIs for the First Time"},"content":{"rendered":"
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In a major milestone for India\u2019s stock market<\/a>, Domestic Institutional Investors (DIIs) have overtaken Foreign Institutional Investors (FIIs) in equity holdings for the first time. This shift highlights the rising strength of local investments<\/a> as global<\/a> uncertainties and changing investor preferences reshape the market.<\/p>\n\n\n\n

As of March 2025, the assets under custody of DIIs stood at Rs 69.80 lakh crore, while those of FIIs totaled Rs 69.58 lakh crore. Although the gap may appear narrow, the trend represents a major turning point in Indian capital markets, where FIIs have historically commanded the lion\u2019s share of institutional inflows. Source: Moneycontrol<\/a>\/CNBCTV18<\/a><\/p>\n\n\n\n

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Source: Moneycontrol<\/a><\/figcaption><\/figure>\n\n\n\n

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The transition reflects the maturing nature of India\u2019s investor base and signifies a potential rebalancing of market forces, where domestic money plays an increasingly central role in driving market sentiment<\/a>.<\/p>\n\n\n\n

A Landmark Shift in Equity Ownership<\/strong><\/h2>\n\n\n\n

According to the latest data from ACE Equities, DIIs held approximately 16.91% of Indian equities as of the March 2025 quarter, slightly surpassing FIIs, whose holdings dropped to 16.84%, marking a 50-quarter low. This marginal but symbolically significant shift highlights how domestic capital has steadily gained prominence against foreign capital, particularly in a volatile global macroeconomic environment. Source: Moneycontrol<\/a><\/p>\n\n\n\n

This shift did not happen overnight. It follows months of consistent domestic buying, which began gaining momentum toward the end of September 2024. During this period, DIIs invested a whopping Rs 3.97 lakh crore, even as FIIs withdrew over Rs 2.06 lakh crore, per data from the National Stock Exchange<\/a> (NSE<\/a>) and National Securities Depository Ltd. (NSDL).<\/p>\n\n\n\n

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What\u2019s Driving the Change?<\/strong><\/h2>\n\n\n\n

The growing preference for DII-led investments reflects a lasting change in investor behavior. Market experts believe this shift isn\u2019t only temporary but a long-term trend. While FIIs have been selling steadily due to global issues like geopolitical tensions and rising interest rates<\/a>, domestic investments have stayed strong.\u00a0<\/p>\n\n\n\n

This strength is mainly driven by regular investments from retail investors through mutual fund SIPs, which have recently hit record highs. While this shift may not immediately change market valuations, it could help reduce market ups and downs since domestic money tends to stay invested longer, unlike the more volatile FII flows.<\/p>\n\n\n\n

A Trend in the Making<\/strong><\/h2>\n\n\n\n

This shift has been brewing over the past few years. Since 2021, DIIs have consistently been more aggressive investors in Indian equities than their foreign counterparts. Here’s a year-wise breakdown:<\/p>\n\n\n\n