Mumbai, Feb 9 The domestic institutional investors (DIIs) have remained key bidders, pumping $23.4 billion in the fourth quarter of 2025 and $90.1 billion in full year 2025 – aided by steady SIP inflows into domestic MFs, a report showed on Monday.
This strong participation has not only helped mitigate the effects of a spike in FII outflows, which totalled $18.8 billion in 2025, but has also absorbed the continued surge in primary market issuances, with IPOs and FPOs amounting to Rs 1.95 trillion for the year, according to the report by Motilal Oswal Financial Services Ltd.
This structural shift in institutional ownership, which has gained momentum since 2021, continues to strengthen as DII holdings reach new peaks, touching 20.6 per cent, while FII holdings remain stable at 18.4 per cent in Nifty 500 companies.
“We believe a reversal in FII outflows could be a key trigger,” said the report.
Over the past one year, DII ownership rose 210 bp YoY (+60bp QoQ) to an all-time high of 20.6 per cent in December 2025. In contrast, FII ownership dipped 50 bp YoY (+10bp QoQ) to 18.4 per cent (compared to 18.9 per cent in December 2024).
“Promoter holdings, which have historically remained range-bound, continued to decline materially to an all-time low of 48.8 per cent (-90bp YoY, -50bp QoQ) in December 2025. This sharp dip was driven by a recovery in the primary market over the last three quarters, where high valuations and strong investor appetite have created an attractive opportunity for several promoters to liquidate their stakes,” said the report.
On a YoY basis, DIIs raised their holdings in 22 out of 24 sectors. The maximum increase in holdings was visible in EMS, Technology, Telecom, Retail, PSU Banks, and Healthcare, while Media and Logistics sectors experienced a reduction in holdings.
On a sequential basis, DIIs recorded the maximum increase in holdings in the NBFC – Non-Lending, Private Banks, Capital Goods, NBFC-Lending, and Consumer sectors.
On a QoQ and YoY basis, however, FIIs raised their stakes in PSU Banks, Telecom, Oil & Gas, Chemicals, NBFC-Lending, Insurance, and Metals, said the report.
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