Key Points

The data highlighted that as of March 31, 2025, the share of DIIs in companies listed on NSE reached an all-time high of 17.62 per cent, up from 16.89 per cent at the end of December 2024. In comparison, FII share holdings dropped to a 12-year low of 17.22 per cent, down from 17.24 per cent in December 2024.

This milestone was driven by a massive net investment of Rs 1.89 lakh crore by DIIs in the March 2025 quarter. In contrast, FIIs pulled out Rs 1.16 lakh crore during the same period, with an outflow of Rs 1.29 lakh crore from the secondary market and a partial offset of Rs 13,107 crore inflow in the primary market, influenced by rising U.S. yields and a stronger dollar.

The data also pointed out that among DIIs, mutual funds led the charge with a net investment of Rs 1.16 lakh crore, pushing their share to a record 10.35 per cent--marking the first time mutual fund holding has crossed into double digits.

Insurance companies also contributed significantly, buying shares worth Rs 47,538 crore. Alternative Investment Funds (AIFs) and Portfolio Management Services (PMS) added Rs 3,885 crore and Rs 1,137 crore, respectively. However, banks were net sellers, offloading Rs 1,345 crore.

In rupee terms, DII holding in the Indian markets now stands at Rs 71.76 lakh crore--2 per cent higher than that of FIIs.

According to Haldea, this structural shift has taken place in the Indian market over the last 10 years. As on March 31, 2015, while the FII share was 20.71 per cent, the combined share of DII, retail, and HNI was just 18.47 per cent.

This has brought the FII to DII ownership ratio below 1 for the first time, standing at 0.98. A decade ago, in March 2015, this ratio was 1.99, with DII share 10.32 percentage points lower than that of FIIs.

PRIME Database Group Managing Director Pranav Haldea called this a "landmark moment" for Indian markets.

He said, "The domestic Mutual Funds (MFs), flush with retail money coming through SIPs, have continued to play a huge role in this with a net investment of Rs 1.16 lakh crore during the quarter, taking their share in companies listed on NSE to yet another all-time high, and the first time in double digits, of 10.35 per cent as on March 31, 2025 (up from 9.93 per cent)."

Sector-wise, both DIIs and FIIs increased their exposure to Financial Services, while reducing allocations to Information Technology and Consumer Discretionary sectors, respectively.

Retail and HNI investors, however, saw a dip in their market share to 7.51 per cent and 1.98 per cent, respectively. Despite net buying Rs 19,766 crore during January and February, they booked profits in March, selling shares worth Rs 18,925 crore when markets rallied.

Meanwhile, promoter share also declined slightly. Government promoter share fell marginally to 9.27 per cent from 9.29 per cent, while private promoters' share dropped to 40.81 per cent from 41.09 per cent, despite net buys worth Rs 393 crore and Rs 7,337 crore respectively.

- ANI