Domestic institutional investors (DIIs) have surpassed foreign institutional investors (FIIs) in ownership of Nifty 500 companies, backed by strong mutual fund inflows and sustained retail participation, according to a Motilal Oswal Financial Services report. As of June 2026, DIIs held a record 21 per cent stake in Nifty 500 companies, while FII ownership fell to a new low of 17 per cent.
Over the past 22 months, DIIs invested a record $166 billion in Indian equities, offsetting foreign outflows of $58 billion. The report said monthly SIP inflows of around $3 billion have strengthened domestic liquidity and reduced the market’s dependence on overseas capital.
