FII Holdings Hit 14-Year Low Amid Indian Equity Sell-off
Infographic: FII Holdings Plunge to 14-Year Low Amid Sustained Equity Exodus
Key Highlights
Foreign Institutional Investor holdings in Indian private sector companies on the NSE have fallen to a 14-year low of 15.88% by June 2026, signaling a sustained equity exodus.
Foreign Institutional Investor () holdings in Indian private sector companies listed on the (NSE) plummeted to a 14-year low of 15.88% as of June 30, 2026. This marks a notable decrease from 16.12% recorded just three months prior, on March 31, 2026.
This significant decline stems from a nearly two-year period of sustained FII selling in Indian equities, as revealed by a PRIME Database Group report. The exodus coincides with a broader underperformance of the Indian equity market.
Key Market Shifts
- FII Holdings (June 30, 2026): 15.88%
- FII Holdings (March 31, 2026): 16.12%
- FII in 2025: Rs 166,283 crores
- Total FPI Selling (YTD June 2026): Exceeded Rs 2.7 lakh crore
- Index Drop ( Sensex, NSE Nifty from Sept 2024 peaks): 6-7%
While FIIs historically dominated non-promoter shareholding, their influence is now significantly diminished. (DIIs), alongside retail and High Individuals (HNIs), have emerged as a robust counterbalancing force.
Their combined share in NSE-listed companies reached an all-time high of 28.66% by June 30, 2026, signaling a clear shift in market dynamics. This rise underscores a reduced reliance on foreign capital in the Indian market.
Domestic Investor Resilience
- Combined DII, , HNI Share (June 30, 2026): 28.66%
- Promoter Share (June 30, 2026): 41.36% (2-year high)
- Promoter Share (March 31, 2026): 40.58%
- Domestic Mutual Funds Share (June 30, 2026): 11.58% (all-time high)
- Individual Investors Share (June 30, 2026): 9.51%
- Individual Investors Net Investment (Q2 2026): Rs 25,625 crore
Pranav Haldea, Managing Director of PRIME Database Group, noted the changing landscape. He indicated that the rise in promoter share to a 2-year high suggests the market may be bottoming out, particularly after a period of decline from 45.20% on December 31, 2021.
Domestic Mutual Funds continue their growth trajectory, marking their twelfth consecutive quarter of increase. Their share rose to an all-time high of 11.58%, up from 11.46% in the previous quarter, driven by a net investment of Rs 2.19 lakh crore.