DII INVESTMENTS AHEAD OF FPI INVESTMENTS

In a trend shift, Domestic Institutional Investors (DIIs) which mainly constitutes mutual funds and insurance companies, have surpassed Foreign Portfolio Investors (FPIs) in India's equity market. As of Mar'25, DIIs held 17.62% stake in NSE listed companies whereas FPIs held 17.22% stake. A decade ago, DII holdings were worth half of FPIs at that time. The rise in DIIs are because more Indians are putting money in equities by way of mutual funds via SIP methods. Unlike FPIs, whose capital flows are often volatile, DIIs remain invested through market cycles. In the last six months, FPIs have sold quite a lot in the market, but the market fall was not very sharp because of DIIs buying. Stocks to benefit by this trend shift are