FII vs DII: Structural shift from foreign capital dependence to domestic capital resilience (opens original article in a new tab)

Domestic institutional investors (DIIs) now hold more equity in Indian markets than foreign institutional investors (FIIs), marking a structural shift driven by steady SIP inflows and domestic capital resilience. This transition has reduced market dependence on global risk appetite and increased stability through long-term domestic investments.

• DIIs owned 19.6% of NSE-listed companies in March 2026, surpassing FIIs' 15.8% ownership
• SIP inflows reached ₹30,954 crore in May 2026, 16% higher than a year earlier
• DIIs absorbed ₹1.16 lakh crore in March 2026, offsetting FIIs' ₹1.18 lakh crore sell-off
• Market resilience increased as domestic capital absorbed foreign selling during volatility