Mumbai, May 2 || For the first time in over two decades, domestic institutional investors (DIIs) have overtaken foreign portfolio investors (FPIs) in terms of ownership in companies listed on the National Stock Exchange (NSE), a new report said on Friday.
This shift highlights the increasing interest of Indian investors in equity markets, as more people move away from traditional investment options like fixed deposits and real estate.
According to data compiled by Primeinfobase.com, DIIs held 17.62 per cent of NSE-listed companies in the March quarter, rising by 0.73 percentage points.
Meanwhile, FPIs saw a slight decline of 0.02 percentage points, bringing their stake to 17.22 per cent.
Ten years ago, FPIs held 20.71 per cent, which was more than the combined share of DIIs, retail investors, and high-net-worth individuals at that time.
Over the past five years, domestic institutions such as mutual funds, insurance companies, and pension funds have been investing heavily in the stock market.
"More individuals are now opting for mutual funds, the National Pension System, insurance and direct equities... this has led to an increase in DIIs' ownership of equities," said Aditya Birla Sun Life Mutual Fund chief executive, A Balasubramanian.
Pranav Haldea, Managing Director of Prime Database Group, called this a historic moment for Indian capital markets.
He credited the steady inflow from retail investors through Systematic Investment Plans (SIPs) as a major factor.