Indian stock market: Indian equity markets witnessed a strong rebound in the first quarter of FY26, bouncing back from their March 2025 lows, even as they faced several challenges during the period.
According to Motilal Oswal’s India Strategy report, Domestic Institutional Investors (DIIs) invested $19.7 billion into Indian equities, while Foreign Institutional Investors (FIIs) added $5.4 billion during the first quarter of 2025.
“ Sustained retail participation and record monthly SIP flows of over USD3b have propelled domestic institutional ownership to new highs. This structural shift in institutional ownership, which has gained momentum since 2021, continues to strengthen as DII holdings reach new peaks and surpass FII holdings in Nifty 500 companies,” the report said.
DII holdings in the Nifty-500 increased by 170 basis points year-on-year (YoY) and 20 basis points quarter-on-quarter (QoQ) to reach 19.4 per cent. In contrast, FII ownership was unchanged at 18.8 per cent, showing a 20 basis point decline YoY and remaining flat QoQ, as per the MOFSL report.
Meanwhile, FII stake in the Nifty 50 fell by 30 basis points YoY but rose by 20 basis points QoQ to 24.9 per cent in June 2025. In contrast, DIIs share climbed further, reaching a record high of 23.9 per cent, up 210 basis points YoY and 30 basis points QoQ.
“ On a YoY basis, DIIs raised their stakes in 44 Nifty-50 companies, while FIIs reduced their stakes in 40 Nifty-50 companies. On a QoQ basis, DIIs raised their stakes in 34 Nifty-50 companies, while FIIs reduced their stakes in 28 Nifty-50 companies,” the report added.
FIIs and DIIs increased/decreased their holdings in THESE Nifty 50 stocks in June 2025 –
Asian Paints
DIIs raised their stake in Asian Paints by 5.5% in June, reflecting optimism that the industry is on the path to recovery and competitive pressures have eased.
Eternal
In June, DIIs raised their stake in Zomato by 2.9%, bringing their total holding to 30.9%, while FIIs continue to hold a 44.3% share in the company.
Cipla
The pharma company saw DIIs raising their stake by 4.3% YoY and 1.1% QoQ. Meanwhile, FIIs reduced their stake by 2.5%.
Bajaj Auto
The two- and three-wheeler maker, which has fallen considerably from its all-time high, witnessed DIIs raise their holdings by 1.1% to 12.1%, while foreign investors reduced their stake in June.
Trent
Tata Group’s Trent saw DIIs increased their holding by 1.3% in June, taking it to 18.5%. By the end of the June quarter, foreign institutional investors (FIIs) held a nearly identical stake of 18.4%.
NTPC
NTPC, the sole state-run firm on the list, witnessed a 1.7% rise in holdings by domestic institutions, while foreign institutions trimmed their stake in the PSU by nearly the same margin.
Shriram Finance
While foreign institutions hold the majority stake in the non-bank lender, domestic investors also showed greater interest, raising their shareholding by 1% to 16.3%.
Tata Steel
In June, domestic institutions raised their stake in Tata Group company Tata Steel by 1.6% to 26.3%, while foreign institutions reduced their holdings in the same quarter.
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