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DIIs Boost Stakes in 82% of Nifty Stocks as FIIs Trim Holdings

A report by Motilal Oswal Financial Services reveals a clear divergence between domestic and foreign institutional investors in the Nifty-50. Domestic Institutional Investors (DIIs) increased their holdings in 82% of the index stocks, while Foreign Institutional Investors (FIIs) reduced exposure in 78% of the constituents. This trend underscores the growing influence of domestic liquidity in providing market support. The contrasting strategies highlight a significant shift in market participation dynamics within India's benchmark index.

Key Points: DIIs Raise Holdings in 82% of Nifty Stocks, FIIs Cut Exposure

  • DIIs raised stake in 82% of Nifty stocks
  • FIIs cut holdings in 78% of index
  • Domestic flows cushion foreign selling
  • Highlights shifting market ownership
2 min read

Domestic investors in share market raise holdings in 82% of Nifty-50 stocks: Report

Report shows domestic investors increased stakes in 41 Nifty-50 stocks while foreign investors reduced holdings in 39, highlighting a key market divergence.

"DIIs raised their stakes in 41 Nifty-50 companies, while FIIs reduced their stakes in 39 Nifty-50 companies. - Motilal Oswal Report"

Mumbai, February 12

Domestic Institutional Investors increased their holdings in 82 per cent of the Nifty-50 stocks, while Foreign Institutional Investors reduced their exposure in 78 per cent of the index constituents, according to a report by Motilal Oswal Financial Services.

The report highlighted a clear divergence in investment strategy between domestic and foreign investors in the Nifty-50 basket. While DIIs strengthened their positions across a majority of stocks, FIIs continued trimming their holdings in a large number of companies.

It stated, "DIIs raised their stakes in 41 Nifty-50 companies, while FIIs reduced their stakes in 39 Nifty-50 companies."

As per the report, in December, DIIs raised their stake in 82 per cent of the Nifty-50 stocks, reflecting sustained domestic participation and confidence in the Indian equity markets. In contrast, FIIs cut holdings in 78 per cent of the stocks in the index, indicating a cautious stance.

The data suggested that domestic investors are playing a key role in providing support to the markets, even as foreign investors recalibrate their portfolios.

The Nifty-50, which represents the top 50 companies listed on the National Stock Exchange, serves as a benchmark for overall market performance.

The report highlighted the growing influence of domestic institutional flows in the Indian stock market. With DIIs increasing exposure in a significant portion of the index, domestic liquidity appears to be cushioning the impact of foreign selling.

At the same time, the reduction in FII holdings across 78 per cent of the stocks reflects a selective approach by overseas investors. The contrasting trend between DIIs and FIIs highlights the shifting dynamics of market ownership within the Nifty-50 universe.

The report also noted that this pattern of increased domestic buying and reduced foreign exposure marks an important development in the structure of market participation. The strong domestic presence is helping maintain stability in the benchmark index despite fluctuations in foreign flows.

The report provided a detailed snapshot of institutional positioning within the Nifty-50 and signals that domestic investors continue to remain active participants in India's equity growth story.

- ANI

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Reader Comments

P
Priya S
Good to see DIIs stepping up. But we must ask why FIIs are pulling out in such large numbers? Is it just global factors, or are there concerns about valuations or policy stability that we are overlooking? A balanced view is important.
R
Rohit P
Amazing! This is the 'Aatmanirbhar' spirit in our capital markets. When foreign investors get jittery, our own people have the confidence to buy. SIP culture and growing financial literacy are really paying off. 💪
S
Sarah B
As someone who recently started investing through mutual funds, this report is reassuring. It feels good to know that the professionals managing my money are bullish on India's top companies, even when foreign funds are cautious.
V
Vikram M
While the headline is positive, we should be careful. If FIIs are selling so broadly, they might see risks we are ignoring. Domestic flows can support the market for a while, but sustained growth needs both local and global confidence.
K
Karthik V
This shift is historic. For decades, we watched FIIs dictate market direction. Now, the power is shifting to Indian hands. This gives stability and reduces vulnerability to global fund withdrawals. A big step for a mature market.

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