MUMBAI : Domestic investors push equity buying past ₹5 trillion for third year runningIndia’s domestic institutional investors have driven net equity purchases beyond the ₹5 trillion mark for a third consecutive calendar year, with total inflows touching ₹5.13 trillion as of August 7, exchange data released Monday showed.
That already outpaces where things stood at the same point last year, when DIIs, a category spanning banks, domestic financial institutions, insurers, pension funds, and mutual funds, had put in ₹4.48 trillion by comparable dates in 2025.
Full-year 2025 closed with ₹7.88 trillion in DII inflows, itself an increase over the ₹5.26 trillion recorded through 2024. Stretched across the last three years, domestic institutions have collectively channelled ₹19.21 trillion into Indian stocks, a period that also saw Foreign Portfolio Investors withdraw close to ₹10 trillion from the same market, meaning domestic money has effectively absorbed the bulk of that foreign exit.
Positioning data through the June 2026 quarter shows DIIs leaning heavily into Consumer stocks, PSU Banks, Oil & Gas, Telecom, Metals, and Technology within the Nifty-500 basket.
Explaining what’s kept this buying momentum alive, U R Bhat, co-founder and director at Alphaniti Fintech, pointed to a steady run of healthy GST numbers and an absence of any major economic shocks, even with the West Asia conflict still unresolved, alongside continued strong deployment into equity and balanced mutual fund schemes. He expects the pace to hold up going forward.
Broader market analysts trace this resilience to a mix of cooling geopolitical risk, softer energy prices, stronger corporate earnings, and valuations that have corrected meaningfully from where they peaked in 2024, together making Indian stocks a more compelling buy than a year ago.
With foreign investors also turning net buyers again after four straight months of selling, the overall read on market sentiment heading into the back half of the year has shifted toward cautious optimism.
