Inflows from DIIs Crossed ₹5 lakh crore mark in 2025 Marking Second Consecutive Year of Inflows Above ₹5 Lakh Crore flow; DII Ownership at Record high in 2025 

The Domestic institutional investors (DIIs) have invested over ₹5 lakh crore in Indian equities in 2025, so far, highlighting their increasing role in balancing market flows amid foreign exits. With four months still to go, this marks the second consecutive year that DIIs have crossed this level of inflows.

DIIs Inflows Crossed ₹5 Lakh Crore Milestone for Second Consecutive Year 

As per provisional NSE figures, mutual funds, banks, insurers, and other domestic players have made net equity purchases worth ₹5.13 lakh crore so far this year, following a record ₹5.25 lakh crore in 2024. This strong participation builds on ₹1.81 lakh crore of buying in 2023, along with an additional ₹2.76 lakh crore later that year.

In contrast, foreign institutional investors (FIIs) have continued to sell, pulling out more than ₹1.6 lakh crore in 2025 after withdrawals of nearly ₹1.21 lakh crore in 2024, according to NSDL data. The robust DII inflows have played a critical role in absorbing these outflows, even as promoters and private equity funds trimmed stake through sizable share sales.

DII Ownership Outpaced FPIs And Scale Record Levels In June

Domestic Institutional Investors (DIIs)—including mutual funds, banks, insurers, and other institutions—raised their ownership to 19.2% in June 2025, the highest in 25 years and the fifth straight quarterly rise. For the second consecutive quarter, DII ownership outpaced Foreign Portfolio Investors (FPIs), whose share fell to 18.5%. While the absolute value of FPI holdings in the Nifty 500 rose 10.4% QoQ, their share declined, reflecting a tilt toward large-cap stocks as FPI ownership in the Nifty 50 increased.

FPI Turn Net Sellers in July; DIIs Continue Strong Buying

After three months of inflows (April to June), foreign portfolio investors (FPIs) turned net sellers in July 2025, pulling out US$2.1 billion amid rising US trade tariffs, weak Q1 earnings in IT and BFSI, and rupee depreciation. They further sold $1.4 billion in the first six sessions of August, leaving net FPI inflows at just $1.1 billion so far in FY26 (till August 8).

In contrast, domestic institutional investors (DIIs) extended their buying streak for the 24th straight month, investing ₹60,939 crore in July and ₹36,796 crore in August (till August 8), cushioning markets from foreign outflows.

Record SIP Inflows Propelling MF (DIIs) Investments in the Stock Market

Systematic Investment Plan (SIP) inflows hit a historic peak in July 2025, crossing ₹28,464 crore—a 4% rise over June and the highest monthly figure ever recorded. The surge in SIP accounts and folios has propelled DIIs' inflows into the stock market. 

• 9.11 crore SIP accounts were active in July, up from 8.64 crore in June.
• SIP assets under management remained robust, even as average ticket sizes varied regionally.
• Equity mutual fund net inflows reached ₹42,702 crore in July, mainly driven by SIPs and retail discipline.