Domestic investors pour $81.3 billion into Indian markets in 2025 to date

Mumbai: Domestic institutional investors (DIIs) have pumped $81.3 billion into Indian equities in 2025 year‑to‑date, surpassing full‑year inflows in 2024, even as foreign institutional investors (FIIs) made net outflows of $16.2 billion, a report said on Thursday.

The report from brokerage Motilal Oswal Financial Services Ltd. (MOFSL) said that the earnings of companies it tracked grew 12 per cent year‑on‑year in the Q2 FY26, while Nifty earnings rose 2 per cent, marking a sixth straight quarter of single‑digit profit after tax (PAT) growth.

Mid and small‑cap segments outperformed in the quarter, with Nifty Midcap‑150 PAT up 27 per cent year‑on‑year and Nifty Smallcap‑250 up 37 per cent on-year, the report added.

Domestic investors made robust inflows of $8.7 billion in November, marking their 28th consecutive month of buying, while foreign flows were largely flat for the month.

Around 60 per cent of Nifty constituents closed higher during the month. Technology, PSU Banks, and healthcare posted strong MoM sector gains while PSBs, auto, and metals lead CY25YTD performance.

Despite the adverse impact of US tariffs on India’s manufacturing sector, domestic demand has so far managed to hold a strong growth trajectory.

The GST cut-led pickup in consumption in Q2 and the rise in government spending in Q3 should provide the necessary boost to offset weak exports, the firm said.

The report noted that forex reserves remained elevated at $688 billion as the Indian rupee traded at Rs 89.5 per US dollar.

Average daily cash market volumes rose 6 per cent month‑on‑month, while futures and options (F&O) volumes stood at the second-highest level of CY25.

Even as Nifty hit a new all‑time high in November 2025, India’s total market capitalisation at $5.3 trillion is marginally below the September 2024 peak. India’s share of global market capitalisation eased to 3.6 per cent from a September 2024 peak of 4.7 per cent as global markets outperformed, the report noted.

IANS