India DIIs Outperform FPIs in FY26 Equity Inflows

Domestic Institutional Investors (DIIs) achieved a record net inflow of Rs 8.5 lakh crore into India’s equity markets during FY26, as per SEBI’s latest annual report. These substantial domestic investments significantly surpassed the Rs 1.8 lakh crore in equity outflows recorded by Foreign Portfolio Investors (FPIs).

This trend highlights the increasing influence and resilience of India’s domestic investor base, demonstrating its capacity to cushion the market against global investment fluctuations.

Key Financial Indicators in FY26

• Domestic Institutional Investors (DIIs) recorded a net inflow of Rs 8.5 lakh crore.
• Foreign Portfolio Investors (FPIs) saw equity outflows totaling Rs 1.8 lakh crore.
• DII ownership in NSE-listed companies reached an all-time high of 17%.
• FPI ownership dropped to a 15-year low of 15.8%.
• Mutual funds contributed approximately Rs 6.4 lakh crore to DII inflows.

The report detailed a notable shift in market ownership, with DII ownership in NSE-listed companies climbing to an all-time high of 17%. This contrasts sharply with FPI ownership, which fell to a 15-year low of 15.8%.

Driving Domestic Investment Momentum

Mutual funds played a pivotal role in bolstering these domestic inflows, accounting for approximately Rs 6.4 lakh crore of the total. This surge was primarily driven by consistent systematic investment plans (SIPs) and a growing wave of retail participation across the country.

The expansion of the investor base further underscores market growth, with demat accounts increasing to 22.5 crore. This broadens the participation spectrum within India’s capital markets considerably.

Robust Corporate Fundraising and Market Resilience

SEBI’s report also showcased robust activity in corporate fundraising. Public equity offerings mobilized a record Rs 2.35 lakh crore, indicating strong corporate confidence and investor appetite.

Additional funds were successfully mobilized through various channels, signaling a dynamic and adaptable capital market ecosystem.

• Significant increases in funds mobilised via SME platforms.
• Substantial growth through rights issues.
• Increased capital raised via preferential allotments.
• Active participation in share buybacks.
• The debt market also experienced considerable expansion.

These collective developments, from expanding investor participation to diverse fundraising avenues, highlight the maturity and inherent resilience of India’s capital markets. SEBI emphasized that domestic savings are increasingly effective in mitigating the effects of global investment flows, ensuring market stability.