The share of FIIs declined further to a 13-year low of 16.71 per cent as on September 30, 2025 (down from 17.05 per cent on June 30, 2025), while MF holdings rose to an all-time high of 10.93 per cent
The strong domestic flow, meanwhile, offset the selling by foreign portfolio investors (FPIs) during CY25, who pulled out $23.3 billion (Rs 2.03 trillion) from the domestic equity markets.
The NSE F&O data shows that domestic institutional investors offloaded over 36,000 contracts of index futures in the last 8 days, while the Nifty 50 index rose nearly 4 per cent.
Foreign Portfolio Investors increased their holding in the bank by nearly 5 percentage points to 29.5% in March 2025 quarter from 24.7% at the end of December 2024 quarter.
DIIs have doubled their shareholding, in terms of absolute number of shares held, in 46 out of the Nifty 500 companies in the last nine months, shows ACE equity data.
According to MF officials, opening the MF route for international investment should not make much difference to the rupee's stability, given that other routes for foreign remittance remain open
FIIs have been on a selling spree across most EMs, including India where they have sold over $11 billion worth of equities since October 2021 when they started to unwind their position here
Market watchers believe that the change in guidelines fly in the face of some of the recent initiatives taken by the government, such as easing norms for foreign portfolio investors
