DIIs Power Indian Market as FII Stake Hits 14-Year Low, $18B Withdrawn

• FII stake in Indian equities fell to a 14-year low of 15.5% in 2025, last seen in 2011.
• Foreign investors withdrew $18 billion from the Indian market in 2025, with equity assets under custody declining by 2.1%.
• Despite significant FII selling, Sensex and Nifty climbed approximately 9%, showcasing market resilience.
• Domestic Institutional Investors (DIIs) invested over 7.63 lakh crore rupees, surpassing FIIs in March 2025.
• DII stake reached a record high of 18.26%, making domestic investors the market's new backbone; FII return possible in 2026.

Why It Matters: Indian market thrives on domestic strength despite FII exit, reducing reliance on foreign capital.