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DIIs pump record ₹3.60 lakh crore into Indian stock market in H1 2025
DIIs pump record ₹3.60 lakh crore into Indian stock market in H1 2025

Mint

timea day ago

  • Business
  • Mint

DIIs pump record ₹3.60 lakh crore into Indian stock market in H1 2025

Domestic institutional investors (DIIs), which largely comprise mutual funds, have pumped record inflows into the Indian stock market in the first half of 2025, continuing to acquire local equities at a rapid pace amid robust retail investor participation. They bought Indian equities worth ₹ 3.57 lakh crore in H1 2025, marking the strongest-ever half-yearly inflows, achieving 68% of the full-year inflow of ₹ 5.26 lakh crore recorded in 2024, and nearly double the ₹ 1.81 lakh crore inflow seen in 2023. DIIs began the year by aggressively acquiring shares worth ₹ 86,591 crore in January, followed by another ₹ 64,853 crore in February. While inflows softened over the next two months, they picked up pace again in May and June, with ₹ 67,642 crore and ₹ 72,673 crore, respectively, largely driven by a surge in block deals. As DIIs continue to expand their portfolios, foreign portfolio investors (FPIs) remained net sellers, pulling out ₹ 1.3 lakh crore from the Indian stock market in the first half of 2025. Though they turned net buyers over the last three months, the aggressive selling during the first quarter of 2025 more than offset the recent inflows, keeping their overall stance negative for the year so far. However, the impact on the market has been limited, with both the Nifty 50 and Sensex gaining over 7% during the same period. The robust DII inflows not only cushioned the impact of FPI outflows but also led to a significant shift in institutional holdings across India Inc. DII ownership in the March 2025 quarter rose by 160 basis points year-on-year (YoY) to an all-time high of 19.2%, up from 17.6% in March 2024. In contrast, FII ownership fell by 40 basis points YoY to an all-time low of 18.8%, down from 19.2% in March 2024. Retail investors have been actively shifting their savings from traditional bank deposits to equities in recent years, aiming to participate in India's growth story, with the majority opting for the mutual fund route to gain ownership in listed companies. This participation has not only broadened the investor base but also provided a strong foundation for the market, encouraging many companies to raise funds through the stock market to capitalize on ongoing domestic demand. This process has expanded the overall size of the Indian stock market, which recently surpassed Hong Kong to become the fourth largest globally. At times, the steady inflows have even forced fund managers to pause or slow down SIP investments, as they found themselves running out of viable allocation opportunities. In May, the assets under management (AUM) of mutual funds crossed ₹ 70 lakh crore for the first time (as per AMFI), which is 31% of the total deposit base of Indian banks ( ₹ 227.4 lakh crore). According to market experts, DII inflows into the Indian stock market are expected to remain strong through the rest of 2025, as mutual fund investments continue to gain momentum with India emerging as a bright spot in the global economy.

DIIs pump record  ₹3.60 lakh crore into Indian stock market in H1 2025
DIIs pump record  ₹3.60 lakh crore into Indian stock market in H1 2025

Mint

timea day ago

  • Business
  • Mint

DIIs pump record ₹3.60 lakh crore into Indian stock market in H1 2025

Domestic institutional investors (DIIs), which largely comprise mutual funds, have pumped record inflows into the Indian stock market in the first half of 2025, continuing to acquire local equities at a rapid pace amid robust retail investor participation. They bought Indian equities worth ₹ 3.57 lakh crore in H1 2025, marking the strongest-ever half-yearly inflows, achieving 68% of the full-year inflow of ₹ 5.26 lakh crore recorded in 2024, and nearly double the ₹ 1.81 lakh crore inflow seen in 2023. DIIs began the year by aggressively acquiring shares worth ₹ 86,591 crore in January, followed by another ₹ 64,853 crore in February. While inflows softened over the next two months, they picked up pace again in May and June, with ₹ 67,642 crore and ₹ 72,673 crore, respectively, largely driven by a surge in block deals. As DIIs continue to expand their portfolios, foreign portfolio investors (FPIs) remained net sellers, pulling out ₹ 1.3 lakh crore from the Indian stock market in the first half of 2025. Though they turned net buyers over the last three months, the aggressive selling during the first quarter of 2025 more than offset the recent inflows, keeping their overall stance negative for the year so far. However, the impact on the market has been limited, with both the Nifty 50 and Sensex gaining over 7% during the same period. The robust DII inflows not only cushioned the impact of FPI outflows but also led to a significant shift in institutional holdings across India Inc. DII ownership in the March 2025 quarter rose by 160 basis points year-on-year (YoY) to an all-time high of 19.2%, up from 17.6% in March 2024. In contrast, FII ownership fell by 40 basis points YoY to an all-time low of 18.8%, down from 19.2% in March 2024. Retail investors have been actively shifting their savings from traditional bank deposits to equities in recent years, aiming to participate in India's growth story, with the majority opting for the mutual fund route to gain ownership in listed companies. This participation has not only broadened the investor base but also provided a strong foundation for the market, encouraging many companies to raise funds through the stock market to capitalize on ongoing domestic demand. This process has expanded the overall size of the Indian stock market, which recently surpassed Hong Kong to become the fourth largest globally. At times, the steady inflows have even forced fund managers to pause or slow down SIP investments, as they found themselves running out of viable allocation opportunities. In May, the assets under management (AUM) of mutual funds crossed ₹ 70 lakh crore for the first time (as per AMFI), which is 31% of the total deposit base of Indian banks ( ₹ 227.4 lakh crore). According to market experts, DII inflows into the Indian stock market are expected to remain strong through the rest of 2025, as mutual fund investments continue to gain momentum with India emerging as a bright spot in the global economy. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

Analysts see bright FY26 with strong DII support and renewed FPI interest
Analysts see bright FY26 with strong DII support and renewed FPI interest

Time of India

time2 days ago

  • Business
  • Time of India

Analysts see bright FY26 with strong DII support and renewed FPI interest

Mumbai: Domestic institutional investors (DII) have intensified buying in the equity market in the first six months of 2025 compared with the corresponding period in the previous year whereas their overseas counterparts ( FPIs ) continued to be net sellers during both periods. DIIs have bought shares worth over ₹3.5 lakh crore so far in 2025 compared with ₹2.4 lakh worth of purchase in the first six months of 2024. FIIs on the other hand were net sellers of ₹1.2 lakh crore worth of Indian equities in each of the periods. In January and February, foreign investors remained aggressive sellers in Indian equities close to ₹1.5 lakh crore until the tide turned in March amid easing interest rate cycle and tax boost by the government in the Union Budget that renewed buying interest in the market. Agencies Analysts said steady and gradual foreign inflows are likely in the next few months as India is attractively placed within emerging markets due to improved market conditions while domestic investors are expected to continue pumping in money into the markets. The trajectory for FY26 is now expected to be better given that the government and RBI are both pro-growth and the earnings concern is already priced in which is a positive signal for both foreign and domestic investors," said Neeraj Chadawar at Axis Securities. In June, both foreign and domestic investors remained buyers worth ₹7,488.98 crore and ₹72,673.9 crore, respectively, driving benchmark Nifty 3.1% higher in the month.

Despite record FPI outflows, Nifty 50 surges 5% in 2025: Details
Despite record FPI outflows, Nifty 50 surges 5% in 2025: Details

Hans India

time16-06-2025

  • Business
  • Hans India

Despite record FPI outflows, Nifty 50 surges 5% in 2025: Details

Despite foreign portfolio investors (FPIs) pulling out $10.6 billion from Indian equities in 2025 — the highest outflows among Asian markets — the Nifty 50 has rallied over 5% year-to-date. This unexpected resilience in Indian equities is being powered by record-breaking inflows from domestic institutional investors (DIIs), mainly mutual funds, who have invested over $36.1 billion this year alone. While FPIs have remained cautious amid global uncertainties — including volatile oil prices, high Indian market valuations, and geopolitical tensions — DIIs have stepped in to drive the market forward. With consistent contributions from retail investors, Indian mutual fund assets under management (AUM) surpassed ₹70 lakh crore in May, marking a significant shift in market dynamics. This growing domestic participation is not just plugging the gap left by FPI exits — it's changing the structure of ownership in Indian markets. For the first time, DII holdings in Nifty-500 companies have surpassed FPI holdings, reflecting a stronger homegrown investment base. Analysts suggest that India's stable inflation outlook, strong economic fundamentals, and rising retail investor engagement are key drivers behind this outperformance. Over the past decade, DIIs have pumped in nearly $195 billion — nearly four times the FPI inflows of $53 billion during the same period. Still, uncertainty looms. Further FPI outflows may occur if crude oil prices rise due to escalating Middle East tensions or if global central banks maintain elevated interest rates. Moreover, cheaper valuations in China and other Asian markets might attract FPI attention elsewhere. Nevertheless, India's stock market continues to defy global trends, underpinned by its strong domestic investor base and structural economic strength.

Indian shares set for muted start to week as Middle East conflict dents sentiment
Indian shares set for muted start to week as Middle East conflict dents sentiment

Business Recorder

time16-06-2025

  • Business
  • Business Recorder

Indian shares set for muted start to week as Middle East conflict dents sentiment

India's equity benchmarks are set to open little changed on Monday after two straight sessions of losses, as the conflict between Israel and Iran showed no signs of cooling, denting risk sentiment. The Gift Nifty futures were trading at 24,791 as of 7:32 a.m. IST, indicating that the Nifty 50 will open near Friday's close of 24,718.6. Both the benchmarks posted weekly losses on Friday as Israel's military strikes on Iran escalated tensions in the Middle East. Over the weekend, Israel and Iran launched fresh attacks, killing and wounding civilians and raising concerns of a broader regional conflict. Other Asian markets opened on a subdued note, with the MSCI Asia ex-Japan index losing 0.2%, while oil prices advanced on supply concerns due to geopolitical tensions in the oil-rich Middle East region. Financials, IT stocks weigh on Indian equity benchmarks A rise in oil prices is negative for importers of the commodity such as India, as crude constitutes a significant share of the country's import bill. Foreign institutional investors (FII) remained net sellers of Indian stocks for a third straight session on Friday, taking their net outflows in June to 54.02 billion rupees ($627.55 million) so far. Domestic institutional investors (DII) remained net buyers of Indian stocks for the 19th straight session on Friday.

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