Domestic investors’ gung-ho on stock markets; lap up Rs 2 lakh crore of shares in 4 months

At a time when foreign institutional investors looked cautious on the domestic equity markets, domestic institutional investors (DIIs) seem busy in shopping on Dalal Street. Data showed that DIIs have bought shares worth Rs 1.88 lakh crore in the ongoing calendar year till April 30. On the other hand, global investors offloaded shares of Rs 1.12 lakh crore during the same period.

 

Meanwhile, broader markets witnessed massive selling with BSE Midcap and BSE Smallcap indices falling 8% and 14% YTD, respectively. The benchmark equity index BSE Sensex gained 2.69% during the same period.

 

Despite offloading shares in the broader markets, domestic institutional investors raised significant shares in select stocks in the broader markets. For instance, DIIs raised their holdings in Teamlease Services to 45.44% as of March 2025 from 34.59% in the preceding quarter. They also upped their stake in AWL Agri-Business, TBO Tek, and Awfis Space Solutions by over 5 percentage points.

 

Max Financial Services, Happiest Minds Technologies, The South Indian Bank, Cyient,  Happy Forgings, Centum Electronics, Deepak Fertilisers And Petrochemicals Corporation, Crompton Greaves Consumer Electricals, Sanathan Textiles, Welspun Enterprises, Sudarshan Chemical Industries, KEI Industries, Sona BLW Precision Forgings, IDFC First Bank, AU Small Finance Bank and Mahanagar Gas stood among other firms in which DIIs raised their stake in Q4FY25.

 

According to NSE’s Market Pulse, the annual share of individual investors in the equity cash segment has exhibited a declining trend in recent years. After rising steadily from 35% in FY15 to a peak of 45% in FY21, the share has consistently declined over the past four years, reaching 34% in FY25. In contrast, proprietary trading has gained momentum over the same period. Its share increased from 21% in FY15 to 23% in FY20, and further to 29% in FY25, making it the second-largest contributor to the segment's turnover.

 

Notably, domestic institutional investors (DIIs) have demonstrated a steadily rising participation, with their share reaching an all-time high of 12.4% on an annual basis in FY25. This trend indicates a growing preference among investors for indirect participation via institutional routes.

 

DIIs also raised their stake in RBL Bank, Prestige Estates Projects, Vishal Mega Mart, Dr. Lal Pathlabs, Concord Enviro Systems, Syngene International, Sterlite Technologies, Kirloskar Oil Engines, HFCL, Ventive Hospitality, and PG Electroplast by more than 1 percentage point during the quarter gone by.