DIIs close in on FIIs as foreign investment hits 12-year low in Indian capital markets
DIIs’) share in Indian capital markets stood at a touching distance of that of foreign institutional investors in the December ended quarter as the latter’s pie fell to a 12-year low, primeinfobase.com data revealed.
The DIIs invested nearly Rs 1.86 lakh crore during Q3FY25 taking their share of the Indian capital market to an all-time high of 16.90% as of December 31, 2024, up from 16.46% on September 30, 2024. Meanwhile, with a net outflow of Rs 1,00,182 crore, the share of FIIs decreased to 17.23% in the said quarter from 17.55% in the July-September period.
The DIIs’ share rose primarily on the back of investments from domestic mutual funds (MFs), which pumped in almost Rs 1.54 lakh crore during the quarter taking their share in companies listed on NSE to yet another all-time high of 9.93% as of December 31, 2024, up from 9.46%.
The FII flow in the reported quarter stood at Rs 1,55,764 crore in the secondary market while it was Rs 55,582 crore in the primary market.
According to Pranav Haldea, Managing Director, PRIME Database Group, DIIs are now within touching distance of FIIs with the gap between their shares reducing further to an all-time low of just 0.33% as of December 31, 2024. In INR value terms too, DII holding of Rs 73.46 lakh crore is now just 1.92% lower than FII holding, another all-time low.
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