Indian investors drove a 20.6% stock market surge in 2025, while foreign investors sold heavily.

In 2025, Indian financial markets gained strength as domestic institutional investors (DIIs) drove growth, with mutual funds leading the surge—equity assets rose 20.6% to Rs 52.25 lakh crore and total assets climbed 23.34% to Rs 73.21 lakh crore. DIIs collectively bought over Rs 1.4 lakh crore in equities, supported by regulatory changes enabling higher equity exposure. Insurance companies, pension funds, alternative investment funds, and banks also saw significant asset growth. In contrast, foreign investors posted minimal gains, net selling Rs 1.66 lakh crore amid global uncertainties.