FPI ownership in NSE listed companies declined further to 15.5-year lows: Weighed down by continued outflows—amounting to a record US$18.9bn in 2025—FPI2 (Foreign Portfolio Investor) ownership in NSE-listed companies declined further to 16.7%—the lowest in 15.5 years. In value terms, however, FPI holding increased by 4.6% QoQ to Rs 78.7 lakh crore as of December 31st, 2025. Over the past two decades, the value of FPI investments has grown at an annualised rate of 16.5%, marginally outpacing the 15.8% growth in overall market capitalisation. Within key indices, FPI ownership in the Nifty 50 declined by 25 bps QoQ to a more than 13-year low of 23.8%, while in the Nifty 500 it remained broadly stable at 18.1%.
2. DMFs’ extended the record run for the 10th successive quarter: Aided by strong SIP inflows and sustained equity buying, DMF (domestic mutual funds) share in NSE listed companies rose to a new record high of 11.1% (Active: 9.1%, Passive: 2.0%)3, marking the 10th consecutive quarter of record highs. This momentum was driven by sustained SIP inflows, averaging Rs 29,992 crore per month in Q3 FY26 (+4.5% QoQ, +16.7% YoY), leading to DMFs remaining net buyers of Indian equities for the 19th straight quarter. DMFs’ share in the Nifty 50 and the Nifty 500 also scaled new highs of 13.6% and 11.7% respectively. Notably, domestic institutional investors4 (DIIs) share remained ahead of FPIs across the NSE listed universe, Nifty 50 and Nifty 500 this year—a position last seen in 2003.
3. Promoter share inched up in Nifty 50 but fell in the overall listed universe: Total promoter shar in NSE-listed and Nifty 500 companies fell by 22 bps and 35 bps QoQ to 49.8% and 48.9%, respectively—marking 20- and 27-quarter lows. The fall was led by lower Government and foreign promoter holdings, partly offset by a modest rise in private Indian promoter share. In contrast, promoter ownership in the Nifty 50 edged up 23 bps QoQ to 40.3%.
4. Individual investors’ share declined marginally in the December quarter: After remaining broadly range-bound over the previous three quarters, direct ownership by individual investors in NSE-listed companies declined by 25 bps QoQ to a three-year low of 9.3% in the December 2025 quarter. This aligns with record-high quarterly net selling by individuals in the NSE secondary markets, amounting to Rs 24,964 crore. Their share in Nifty 50 and Nifty 500 companies fell by 10bps and 11bps to 7.7% and 8.5% respectively. Individuals—both direct investors and those investing via mutual funds—currently hold 18.6% of total NSE-listed market capitalisation, down 13 bps QoQ from a 22-year high in the September quarter. In value terms, this amounts to Rs 87.6 lakh crore, reflecting an annualised growth of 34.2% since March 2020.
5. Household equity wealth rose by ~Rs 57 lakh crore since Apr’20: Sustained market returns alongside rising participation have led to substantial household wealth creation. Our estimates indicate cumulative household equity accretion of around Rs 57 lakh crore since April 2020, including roughly Rs 10 lakh crore added in the first three quarters of FY26.
6. Sector-wise portfolio positioning: FPIs stayed OW5 on Financials, albeit with a softer tilt and increased their OW on Communication Services. They retained UW in Consumer Staples, and commodity-linked sectors including Materials and large-cap Energy, remained cautious on Industrials, and continued with a neutral positioning on others. DMFs strengthened their OW on large-cap Financials, while remaining neutral on mid- and small-caps in the sector, stayed constructive on mid-tier Consumer Discretionary, retained and UW on Consumer Staples and maintained a negative stance on commodity sectors including Energy and Materials.
7. Institutional portfolio exposure to Nifty 50 rises marginally; portfolio breadth sustained: Institutional investors’ allocation to Nifty50 inched up further to 60.9% (Nifty 50 share in total market cap: ~45%), but remained steady in the top decile stocks, reflecting mid-cap outperformance in Q3. Portfolio breadth, however, sustained, with FPIs now having stake in ~2,010 companies, up from ~1,200 five years ago.