American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Latest News

Are DIIs becoming the new owners of Indian equities as FIIs flee?

by admin October 30, 2024
October 30, 2024
Are DIIs becoming the new owners of Indian equities as FIIs flee?

In October, foreign institutional investors (FIIs) pulled out a staggering $12 billion from Indian equities, surpassing the previous record set in March 2020.

Yet, despite these heavy withdrawals, India’s equity indices displayed resilience, thanks to unprecedented investments by domestic institutional investors (DIIs).

These domestic players stepped up in the face of FII outflows, taking local markets by storm.

With their buying momentum, DIIs may have become the largest holders of Indian equities for the first time this century, marking a shift in the ownership balance of Indian assets, a report by The Economic Times said.

The gap between FIIs and DIIs narrows

By the end of September, the gap between FII and DII ownership in NSE-listed companies had shrunk to just 109 basis points, marking a historic low.

Although full ownership data for October through December won’t be available until January, preliminary signs suggest that the trend of rising domestic ownership continued through October.

“There has been a dramatic shift in ownership in Indian capital markets over the past few quarters, with local investors taking the lead and FIIs losing influence,” commented Pranav Haldea, MD of Prime Database Group in the report.

This shift points to an evolving landscape where Indian equities are increasingly supported by local capital, which has gained resilience and scale in recent years.

Record SIPs fuel domestic market power

The growth of Systematic Investment Plans (SIPs) has been a crucial factor in the rise of DIIs.

Monthly SIP inflows surpassed ₹20,000 crore in April and reached a new peak of ₹24,508.73 crore by September, underscoring a growing commitment from Indian retail investors.

Each month saw an increase, with the number of new SIPs registered hitting nearly seven million in September.

The country’s mutual fund industry’s Asset Under Management (AUM) reached Rs 66.70 lakh crore in August.

This steady inflow has provided DIIs with additional resources to counterbalance FII sales, bringing stability to the market.

Prateek Agrawal, MD and CEO, of Motilal Oswal AMC, said,

Over time, domestic money has indeed shifted from other asset classes to stocks as expected amid a rising per capita disposable income.

Empowered role of DIIs in making markets more resilient

Historically, significant FII outflows would send shockwaves through the Indian stock market, often leading to sharp corrections.

However, the dynamics have changed in recent quarters as DIIs have started playing a more substantial role.

“In the past, when FIIs sold, the market would collapse, and LIC and other domestic institutions would step in to prevent further damage. Now, things have changed,” Haldea noted.

In the September quarter, DIIs invested nearly ₹1.03 lakh crore in Indian equities, compared to the ₹55,629 crore bought by FIIs, demonstrating the capacity of domestic funds to anchor market stability.

With DIIs outpacing FIIs in October, the Indian market may be witnessing a long-term shift in ownership.

As domestic capital continues to grow, bolstered by record SIP contributions and investor interest, India’s financial markets are likely to become increasingly resilient against global volatility.

The post Are DIIs becoming the new owners of Indian equities as FIIs flee? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Gold price reaches new high, surpasses $2,800 per ounce; palladium continues its ascent
next post
Will the EU ‘pay a big price’ for not buying enough American exports, as Trump claims?

Related Posts

US tourist on safari in Zambia killed by...

April 6, 2024

New analysis of Beethoven’s hair reveals possible cause...

May 11, 2024

Could Bitcoin help US reduce its $36 trillion...

December 17, 2024

Hezbollah fires more than 200 missiles at Israeli...

July 5, 2024

Tesla excluded from California’s proposed EV buyer incentive...

November 26, 2024

French rail lines disrupted by ‘coordinated sabotage’ ahead...

July 26, 2024

Brazil’s inflation hits 14-month high as consumer prices...

December 11, 2024

Is Airbnb contributing to the global housing shortage?

November 9, 2024

Russia tightens control over oil exports with new...

April 2, 2025

US military starts delivering aid to Gaza through...

May 18, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,209)
    • Investing (2,537)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved