Wall St to SIPs: DII ownership at record high, FIIs slip to 12-quarter low

DIIs Now Own More Indian Equities Than FIIs Across Nifty 50 and Nifty 500

Foreign institutional investors (FIIs) are steadily losing their dominance over Indian equities as domestic institutional investors (DIIs) tighten their grip across market caps and sectors. According to a report by Elara Securities, FII ownership in the Nifty 50 has fallen to a 12-quarter low of 22.8% in March 2026, down from 25.4% in June 2023, while DII ownership has surged to a record 24.9%, up from 20.3% during the same period. 

 

The shift is even more visible in the broader Nifty 500, where DII holdings rose to 19.9%, overtaking FIIs at 17.6%. Across midcaps and smallcaps too, domestic institutions now own significantly more than foreign investors.

 

 

FII ownership drops across all major indices

 

The report shows that FII ownership continued to decline across indices in the March 2026 quarter.

 

FII holdings in March 2026:

Nifty 50: 22.8%

NSE Midcap 150: 13.8%

NSE Smallcap 250: 11.2%

Nifty 500: 17.6%

 

These are among the lowest levels seen in the past 12 quarters.

 

The fall becomes sharper when compared with June 2023:

 

Nifty 50 FII ownership has fallen from 25.4% to 22.8%

Nifty 500 declined from 20.3% to 17.6%

Midcap 150 fell from 15.5% to 13.8%

Smallcap 250 slipped from 11.7% to 11.2%

 

The data reflects sustained foreign selling pressure amid:

 

geopolitical tensions,

high US interest rates,

global economic slowdown concerns,

and elevated Indian market valuations.

 

DII ownership rises steadily across all segments

 

In contrast, DII ownership has steadily risen over the same period.

 

DII ownership in March 2026:

Nifty 50: 24.9%

NSE Midcap 150: 16.8%

NSE Smallcap 250: 15.5%

Nifty 500: 19.9%

 

Compared with June 2023:

 

Nifty 50 DII ownership rose from 20.3% to 24.9%

Nifty 500 increased from 16.7% to 19.9%

Midcap 150 climbed from 14.6% to 16.8%

Smallcap 250 advanced from 12% to 15.5%

 

The increase has been largely driven by:

 

record SIP inflows,

mutual fund participation,

insurance flows,

and rising retail participation through systematic investing.

DIIs now own more than FIIs

 

One of the biggest takeaways from the report is the crossover in ownership.

 

In Nifty 50:

DII ownership: 24.9%

FII ownership: 22.8%

 

In Nifty 500:

DII ownership: 19.9%

FII ownership: 17.6%

 

The gap is even more striking in broader markets:

 

Midcap 150:

DIIs: 16.8%

FIIs: 13.8%

Smallcap 250:

DIIs: 15.5%

FIIs: 11.2%   

Promoter ownership recovers after decline

 

Promoter holdings, which had declined over the previous four quarters, also recovered in March 2026.

 

Promoter ownership:

Nifty 50: 41%

Midcap 150: 54.9%

Smallcap 250: 52.6%

Nifty 500: 49.4%

 

The report notes promoter ownership had touched lower levels in December 2025 before seeing recovery.

 

This suggests:

 

reduced stake dilution,

improved promoter confidence,

and stabilisation in corporate ownership patterns.

Retail participation remains uneven

 

Public and retail ownership trends remained mixed.

 

Public ownership in March 2026:

Nifty 50: 11.3%

Midcap 150: 14.4%

Smallcap 250: 20.8%

Nifty 500: 13.1%

 

Retail participation remains strongest in smallcaps, where ownership is nearly double that of Nifty 50 companies.

 

The data indicates:

 

retail investors continue chasing higher-risk smallcap opportunities,

while largecap participation has moderated.

FIIs cut exposure in banks, IT, FMCG and real estate

 

Sectorally, FII ownership trends remained weak across several key sectors.

 

Major sectors seeing FII decline:

Auto: from 20% to 17.9%

FMCG: from 23.1% to 16.5%

IT services: from 19.8% to 17.9%

Real estate: from 18.6% to 17.8%

Transportation: from 21.3% to 15.6%

Utilities: from 15.8% to 12.1%

 

The steepest decline was seen in:

 

FMCG,

transportation,

and IT services.

 

However, FIIs increased exposure in selective sectors such as:

 

telecom,

chemicals,

metals,

sugar,

and textiles.

 

Telecom FII ownership rose from 19.2% to 23.6% during the period.

 

DIIs increase exposure across sectors

 

Domestic investors showed broad-based buying across sectors.

 

Key DII ownership increases:

IT services: 15.8% → 23.6%

Sugar: 11.8% → 21.3%

Real estate: 9% → 12.9%

Transportation: 11.7% → 19.4%

Auto: 17.7% → 20.2%

Healthcare: 16.7% → 20.2%

 

This indicates strong domestic conviction in:

 

manufacturing,

infrastructure,

digital businesses,

and domestic cyclical themes.

Stock-level shifts reveal changing market preferences

 

The report also identified major stock-level ownership changes.

 

Top FII additions:

Sammaan Capital

Vishal Mega Mart

Hindustan Zinc

MRPL

Top FII reductions:

Hexaware Technologies

IRCTC

Aavas Financiers

Poly Medicure

Top DII additions:

Urban Company

IRFC

Waaree Energies

Lodha Developers

Aavas Financiers

 

This highlights growing domestic appetite for:

 

infrastructure,

energy transition,

financials,

and real estate-linked plays.

Why this matters for investors

 

The changing ownership structure is reshaping how Indian markets behave.

 

Earlier:

 

FIIs drove market rallies and corrections,

global risk sentiment dictated valuations,

and domestic investors played a supporting role.

 

Now:

 

SIP inflows are cushioning volatility,

domestic liquidity is stabilising markets,

and Indian equities are becoming less dependent on foreign flows.

 

The rise of DIIs also means:

 

markets may become structurally more resilient,

local themes could dominate leadership,

and volatility from global shocks may reduce over time.   

Stock-level ownership shifts

Top FII additions

Sammaan Capital

Vishal Mega Mart

Hindustan Zinc

Mangalore Refinery 

Top FII reductions

Hexaware Technologies

IRCTC

Aavas Financiers

Poly Medicure

Top DII additions

Urban Company

IRFC

Waaree Energies

Lodha Developers

Aavas Financiers