NEW DELHI: Domestic institutional investors (DIIs) have strengthened their hold on the Indian equities, as their ownership in the Nifty 500 rose to an all‑time high of 21 per cent while foreign institutional investor (FII) ownership declined to 17 per cent, a report said on Friday.
The report from Motilal Oswal Financial Services said the rise marked the ninth consecutive quarter of rising DII ownership.
Sustained domestic inflows have comfortably absorbed $58 billion of cumulative FII outflows over the past 22 months while DIIs invested a record $166 billion in the same period.
During this period, resilient SIP inflows averaged around $3 billion per month, providing stability to the market despite continued foreign selling.
The report noted the shift in ownership was broad based, with DIIs increasing holdings in 19 of the 24 sectors within the Nifty 500 over the past year.
The largest increases were seen in private banks, telecom, real estate, technology, healthcare, insurance, automobiles, PSU banks, NBFC‑lending, retail and capital goods. FIIs, meanwhile, reduced their holdings across 19 sectors, while selectively increasing exposure to metals, PSU banks, NBFC‑lending, capital goods and logistics.
The report highlighted continued preference for financials among institutional investors. BFSI accounted for 34.6 per cent of sector allocation for FIIs within the Nifty 500, followed by automobiles at 8 per cent, healthcare at 6.9 per cent, oil & gas at 6.5 per cent and capital goods at 6.2 per cent.
For DIIs, BFSI remained the largest allocation and touched an all-time high of 29.4 per cent, followed by automobiles at 7.9 per cent, capital goods at 7.4 per cent and oil & gas at 7.3 per cent.
DII ownership reached record highs across large, mid and small-cap stocks, while FII ownership moderated across all three segments.
Within the Nifty 500, DIIs increased their holdings in 73 per cent of companies, while FIIs reduced their stakes in 59 per cent. In the Nifty 50, DIIs raised holdings in 82 per cent of stocks, whereas FIIs trimmed their exposure in 72 per cent.
