MUMBAI — For the first time in over two decades, domestic institutional
investors (DIIs) have overtaken foreign portfolio investors (FPIs) in terms of
ownership in companies listed on the National Stock Exchange (NSE), a new
report said on Friday.
This shift highlights the increasing interest of Indian
investors in equity markets, as more people move away from traditional
investment options like fixed deposits and real estate.
According to data compiled by Primeinfobase.com, DIIs
held 17.62 per cent of NSE-listed companies in the March quarter, rising by
0.73 percentage points.
Meanwhile, FPIs saw a slight decline of 0.02 percentage
points, bringing their stake to 17.22 per cent.
Ten years ago, FPIs held 20.71 per cent, which was more
than the combined share of DIIs, retail investors, and high-net-worth
individuals at that time.
Over the past five years, domestic institutions such as
mutual funds, insurance companies, and pension funds have been investing
heavily in the stock market.
"More individuals are now opting for mutual funds,
the National Pension System, insurance and direct equities... this has led to
an increase in DIIs' ownership of equities," said Aditya Birla Sun Life
Mutual Fund chief executive, A Balasubramanian.
Pranav Haldea, Managing Director of Prime Database Group,
called this a historic moment for Indian capital markets.
He credited the steady inflow from retail investors
through Systematic Investment Plans (SIPs) as a major factor.
This shift in investment patterns has significantly
boosted the share of DIIs in the equity market, and experts believe this trend
will continue.
Meanwhile, the Indian stock market delivered a strong
performance in April despite global uncertainties.
