Are Domestic Investors Investing $81.3 Billion in Indian Markets in 2025?
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Synopsis
In a remarkable turn of events, domestic institutional investors (DIIs) have injected a whopping $81.3 billion into Indian markets in 2025 so far, outpacing last year's total. This report details their consistent buying trend while foreign institutional investors faced significant outflows.
Key Takeaways
- DIIs invested $81.3 billion in Indian equities in 2025.
- FIIs faced net outflows of $16.2 billion.
- Nifty Midcap-150 PAT increased by 27% year-on-year.
- Domestic demand remains strong despite US tariffs.
- Forex reserves are at $688 billion.
Mumbai, Dec 4 (NationPress) Domestic institutional investors (DIIs) have invested $81.3 billion into Indian equities as of 2025, exceeding the total inflows of 2024. In contrast, foreign institutional investors (FIIs) experienced net outflows of $16.2 billion, according to a report released on Thursday.
The report from Motilal Oswal Financial Services Ltd. (MOFSL) highlights that the earnings of the tracked companies increased by 12 percent year-on-year in Q2 FY26, while Nifty earnings rose by 2 percent, marking the sixth consecutive quarter of single-digit profit after tax (PAT) growth.
The mid and small-cap sectors outshone others during the quarter, with Nifty Midcap-150 PAT soaring by 27 percent year-on-year and Nifty Smallcap-250 up by 37 percent.
In November, domestic investors recorded substantial inflows of $8.7 billion, marking their 28th consecutive month of purchases, while foreign flows remained relatively unchanged.
Approximately 60 percent of Nifty constituents saw gains during the month. The technology, PSU banks, and healthcare sectors achieved notable month-on-month growth, while PSBs, auto, and metals led the performance for CY25YTD.
Despite the negative effects of US tariffs on India's manufacturing sector, domestic demand has maintained a strong growth trajectory.
The increase in consumption following the GST cut in Q2, along with rising government spending in Q3, is expected to counterbalance weak exports.
The report also indicated that forex reserves remain high at $688 billion with the Indian rupee trading at Rs 89.5 per US dollar.
Average daily cash market volumes saw a 6 percent month-on-month increase, while futures and options (F&O) volumes reached the second-highest level of CY25.
Even though Nifty achieved a new all-time high in November 2025, India's total market capitalization stands at $5.3 trillion, slightly below the peak from September 2024. India's share of global market capitalization declined to 3.6 percent from a September 2024 peak of 4.7 percent as global markets outperformed, the report noted.
IANS
aar/na
Point of View
It is essential to recognize that the substantial investments by domestic institutional investors indicate confidence in the Indian economy's resilience. While foreign outflows raise concerns, the overall market dynamics suggest a promising outlook for future growth.
NationPress
04/12/2025
Frequently Asked Questions
What is the total investment by domestic investors in 2025?
Domestic investors have invested $81.3 billion in Indian markets so far in 2025.
How do foreign institutional investors (FIIs) compare?
Foreign institutional investors have experienced net outflows of $16.2 billion.
Which sectors showed significant growth?
Technology, PSU Banks, and healthcare sectors exhibited strong month-on-month gains.
What impact have US tariffs had on the Indian market?
US tariffs have negatively affected India's manufacturing sector, but domestic demand remains strong.
What is the current status of India's forex reserves?
India's forex reserves stand at $688 billion.
