Domestic institutional investors (DIIs) remained bullish on the Indian stock market in the first half of 2025, investing more than Rs 3.5 lakh crore despite global uncertainties and market fluctuations.
According to NSE data, DIIs invested a total of Rs 3,54,861.75 crore in Indian equities between January 1 and June 25 of this year. Surprisingly, domestic institutions experienced consistent inflows throughout the period.
Key Highlights
- Domestic institutional investors infused a record ₹3.5 lakh crore into Indian equities in H1 2025.
- Their inflows cushioned markets amid ₹1.3 lakh crore FII outflows, stabilizing Sensex and Nifty gains.
The monthly breakdown shows that DIIs invested Rs 86,591.80 crore in January and Rs 64,853.19 crore in February. In March, the inflow was Rs 37,585.68 crore, while in April and May, investments totaled Rs 28,228.45 crore and Rs 67,642.34 crore.
Between June 1 and June 25, DIIs contributed Rs 69,960.63 crore to Indian equities. Analysts attribute the ongoing investment trend to strong domestic economic fundamentals.
However, they became net buyers in subsequent months, investing Rs 2,014.18 crore in March, Rs 2,735.02 crore in April, and Rs 11,773.25 crore in May.
Once again, in June (until June 25), FIIs sold shares worth Rs 5,670.92 crore, making them net sellers for the month. Despite global headwinds, the Indian stock market generated strong returns in the first half of 2025.
Benchmark indices have maintained their upward trend, with the Nifty up around 7% and the Sensex up more than 6% during this time.
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Foreign institutional investors (FIIs) expressed mixed sentiment, owing primarily to global volatility. FIIs unloaded Rs 87,374.66 crore in January and Rs 58,988.08 crore in February.