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Key Points

Foreign investors are gradually pulling back from Indian markets while domestic investors are increasing their presence. The June 2025 report reveals a significant shift in institutional holdings across Nifty 50 companies. Domestic institutional investors have reached an all-time high ownership percentage, reflecting growing confidence in Indian equities. This trend is accompanied by a notable reduction in promoter holdings, indicating potential strategic stake sales.

Key Points: FII DII Stake Shifts Nifty 50 Holdings Reveal Market Trends

  • - FIIs reduced stakes in 40 Nifty-50 companies in June
2 min read

FIIs reduced stakes in 40 of the Nifty-50 companies in June, while DIIs increased stakes in 44: Report

Foreign investors reduce stakes while domestic investors increase holdings in Nifty 50 companies, signaling significant market dynamics in June 2025.

"DIIs raised their stakes in 44 Nifty-50 companies - Motilal Oswal Financial Services Report"

Mumbai, August 11

Foreign investors have continued to reduce their stakes in major Indian companies, while domestic investors are steadily increasing their presence.

According to a report by Motilal Oswal Financial Services, out of the 50 companies in the Nifty 50 index, Foreign Institutional Investors (FIIs) reduced their stakes in almost 40 companies in June, whereas Domestic Institutional Investors (DIIs) increased their holdings in 44 companies.

It stated "DIIs raised their stakes in 44 Nifty-50 companies, while FIIs reduced their stakes in 40 Nifty-50 companies".

The report also mentioned that if we see on a quarter-on-quarter (QoQ) basis in the first quarter of current financial year, DIIs increased their holdings in 34 Nifty-50 companies, while FIIs reduced their stakes in 28.

Overall, DII ownership reached an all-time high of 19.4 per cent in June 2025, rising 170 basis points (bp) YoY. FII ownership drops to 18.8 per cent, reflecting a decrease of 20 bp YoY.

Promoters holdings, which have generally remained stable in the past, fell sharply to an all-time low of 49.3 per cent in June 2025, down 170 bp YoY and 20 bp QoQ.

This decline as per the report was driven by a recovery in the primary markets during the first quarter of FY26, where high valuations and strong investor demand encouraged several promoters to sell their stakes. Retail holdings however, stayed stable at 12.4 per cent, with a marginal 10 bp increase YoY and no change in QoQ.

Breaking down the numbers further, FII holdings in private companies in June fell 60 bp YoY but saw a slight QoQ rise of 10 bp to 20.2 per cent in June 2025. In public sector undertakings (PSUs), FII stakes fell 30 bp QoQ to 17.7 per cent but were higher by 120 bp on a YoY basis.

Meanwhile, DIIs' stake in private companies climbed to an all-time high of 19.2 per cent, up 190 bp YoY. However, their holdings in PSUs slipped 20 bp QoQ to 18.6 per cent, though this was still up 120 bp YoY.

The report also highlighted that the buoyancy in primary and secondary markets also encouraged more promoters in private companies to dilute their stakes, bringing promoter holdings in Nifty 500 companies to a record low of 46.9 per cent in June 2025.

- ANI

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Reader Comments

S
Sarah B
Interesting trend but shouldn't we be concerned about promoter holdings hitting record lows? This could indicate founders are cashing out at peak valuations rather than staying invested for long-term value creation. Need to watch this space carefully.
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Ananya R
As a retail investor, I'm happy to see DIIs increasing stakes. They understand Indian market dynamics better than foreign investors who often panic during volatility. This shift might bring more stability to our markets. 👍
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Karthik V
The PSU numbers are most interesting - FIIs reducing while DIIs increasing. Shows domestic institutions see value where foreigners don't. Maybe time to look at some PSU stocks for long-term portfolio?
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Michael C
While the domestic investor confidence is commendable, we shouldn't ignore that FIIs still hold significant stakes. Their continued selling could create short-term pressure on markets. Need balanced participation from both for healthy growth.
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Priya S
The promoter stake reduction is worrying. Many Indian promoters are treating their companies like ATMs instead of building institutions. SEBI should monitor this trend closely to protect minority shareholders' interests.

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