24 May 2025, Sat

If you think that only foreign investors decide the attitude of the Indian stock market, then the time has come to change this thinking. Because for the first time, Indian domestic institutional investors ie DII (Domestic Institute Investors) have left behind foreign institutional investors (FII).

Desi investors created history

According to the March 2025 data, the DII’s share in the stock market has reached 17.62 per cent, which is the highest ever. At the same time, FII’s stake has come down to 17.22 percent and this is the lowest level of the last 12 years.

What changed in this story?

There is a very interesting trend behind this big change. This is the trend, continuous investment in mutual funds, especially through SIP (Systematic Investment Plan). In the Q4 (January to March 2025) alone, 1.16 lakh crore was invested through SIP. For this reason, for the first time, the share of mutual funds also crossed 10 percent.

Dollar strong, FII weak

The growing bond yields and strong dollars in the US removed foreign investors from the Indian market. For this reason, FII sold a total shares worth a total of 1.29 lakh crore in this quarter, while in the primary market made a minor purchase of 13,000 crores. In total, a net outflow of 1.16 lakh crore was recorded.

Why is this trend important?

This trend does not mean just a game of numbers. The direct effect of this is that now India’s stock market is becoming less unstable. That is, when FII is sold, then you are making balance by buying DII and there is no major decline in the market.

What will happen next?

Experts believe that if this trend continues, India will have to reduce dependence on foreign capital. Strong domestic investment will give long-term stability to the market and when FII returns again (after global rate cuts), DII-Fii can take the Indian stock market to new heights.

Also read: Do not cut electricity anywhere … Bangladesh is still paying the bill to Adani Power, still survived

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