Self reliance! In a historic shift, DIIs’ shareholding in Indian stocks is now higher than that of FIIs

In a historic shift, DIIs’ shareholding in Indian stocks is higher that of FIIs

In a landmark shift for Indian capital markets, Domestic Institutional Investors (DIIs) have, for the first time, overtaken Foreign Institutional Investors (FIIs) in terms of their shareholding in NSE-listed companies. As of March 31, 2025, DIIs held a record 17.62% stake, surpassing FIIs at 17.22%, according to data from primeinfobase.com, an initiative of PRIME Database Group.

This shift comes on the back of a massive Rs 1.89 lakh crore net inflow from DIIs during the March 2025 quarter, led by mutual funds which pumped in Rs 1.16 lakh crore, aided by strong retail flows through SIPs.

This helped mutual funds cross the psychological double-digit mark for the first time, with their share rising to 10.35%, up from 9.93% in the December quarter.

Insurance companies, led by Life Insurance Corporation of India (LIC), were also major contributors, investing ₹47,538 crore. LIC alone added ₹34,435 crore, pushing its share in NSE-listed companies to 3.72%, its highest level in five years.

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Meanwhile, FIIs recorded a net outflow of Rs 1.16 lakh crore during the quarter, driven by concerns over rising US bond yields and a strengthening dollar. Their share in the market has now dropped to its lowest in 12 years.In absolute value terms, DII holdings at Rs 71.76 lakh crore are now 2% higher than FII holdings, with the FII-to-DII ownership ratio falling below 1 for the first time to 0.98.”This marks a structural transformation of the Indian market,” said Pranav Haldea, MD of PRIME Database. “We have come a long way from 2015, when DIIs lagged FIIs by over 10 percentage points in shareholding. Today, India’s capital market is increasingly driven by domestic capital and confidence.”

Together, DIIs, retail and HNI investors now account for 27% of the market, an all-time high. While retail and HNI participation dipped slightly this quarter, they remain a vital pillar of the market.

Experts said the growing influence of domestic money marks a turning point for India’s financial self-reliance reducing dependence on volatile foreign flows.

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