Domestic investors surpassed foreign ones in Indian stock ownership by Sept. 30, 2025, due to strong retail fund inflows.

Domestic institutional investors (DIIs) held a record 18.26% of NSE-listed companies by September 30, 2025, surpassing foreign investors, whose stake fell to 16.71%—a 13-year low. This marked the widest gap between domestic and foreign ownership in 25 years, driven by strong retail inflows into mutual funds via SIPs, which boosted MF holdings to 10.9%. Domestic investors bought Rs 2.21 lakh crore in equities, while foreign investors sold Rs 1.02 lakh crore, citing valuation concerns. Despite ongoing secondary market outflows, foreign funds invested $1.2 billion in Indian IPOs in October—the second-highest monthly inflow this year—indicating continued interest in primary markets.