DIIs Set to Surpass FIIs in Indian Equity Market

In the December quarter, the gap between Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) in Indian equities narrowed significantly. FIIs sold shares worth Rs 1.56 lakh crore. DIIs acquired shares worth Rs 1.86 lakh crore. This change brought the ownership gap to a record low of 0.3 percentage points, down from 10.3 percentage points in March 2015.

DIIs now hold assets worth Rs 73.47 lakh crore. FIIs’ assets stand at Rs 74.91 lakh crore. The sharp decline in Sensex and Nifty by 8.7% and 9.7% respectively, influenced this trend. Retail investor participation hit a record high of 7.69%. High-net-worth investors’ participation reached a three-year peak of 2.09%.

As the gap continues to close, the dynamics of the Indian equity market are evolving. DIIs are playing a more prominent role. This shift highlights the growing influence of domestic investors in shaping the market landscape.