DIIs invest ₹3.57L crore into Indian equities in H1 2025
What's the story
Domestic institutional investors (DIIs), mostly mutual funds, have made a record investment in the Indian stock market in H1 2025. They invested ₹3.57 lakh crore during this period, the highest ever half-yearly inflow. This is 68% of the full-year inflow of ₹5.26 lakh crore seen last year, and nearly double the ₹1.81 lakh crore inflow recorded in 2023.
Market activity
A closer look at DII trend in H1 2025
DIIs started 2025 with aggressive buying, investing ₹86,591 crore in January and ₹64,853 crore in February. Though inflows slowed down in the next two months, they picked up pace again in May and June. The surge was largely driven by a spike in block deals.
Investor behavior
FPIs remained net sellers
While DIIs continued to build their portfolios, the foreign portfolio investors (FPIs) remained net sellers, pulling out ₹1.3 lakh crore from our stock market in H1 2025. Despite turning net buyers in the last three months, aggressive selling during Q1 2025 offset the recent inflows, keeping their overall stance negative for the year so far.
Market resilience
Major shift in institutional holdings
The strong DII inflows have not only cushioned the impact of FPI outflows, but also led to a major shift in institutional holdings across the country. DII ownership in the March 2025 quarter rose by 160 basis points YoY to touch an all-time high of 19.2%, up from 17.6% in March 2024. Meanwhile, FII ownership fell by 40 basis points YoY to an all-time low of 18.8%, down from 19.2% in March last year.