Domestic institutional investors (DIIs) have reached a record level of influence in Indian equities, with their ownership stake in the Nifty 500 index climbing to an all-time high of 21% in June.
The data, reported by Livemint, reveals a decisive shift in portfolio construction as local funds increasingly favor sectors tied to India’s domestic consumption and infrastructure story over those reliant on external demand.
The sectoral rotation was broad-based, with DIIs increasing their exposure in 14 of the 24 sectors tracked within the index.
Healthcare, automobiles, and capital goods emerged as primary beneficiaries of this inflow, reflecting confidence in the country’s internal growth drivers.
Conversely, holdings were trimmed in six sectors, while four remained unchanged, signaling a selective rather than blanket accumulation strategy.
This move underscores the deepening role of domestic capital in stabilizing and driving Indian markets, particularly as foreign investor flows have shown volatility.