RAPID RISE

As the dynamics of the Indian markets undergo transformation, the FMCG sector continues to forge ahead with remarkable progress

In a significant shift, the Indian stock market has been witnessing a steady increase in the participation of domestic investors, comprising DIIs (Domestic Institutional Investors), retail investors, and HNIs (High Net Worth Individuals). This trend, which has persisted for six consecutive quarters, reflects a transformative period in India’s financial landscape, as per reports.

According to primeinfobase.com, as of 31st March this year, domestic investors’ stake in these companies reached another all-time high of 25.72%, up from 24.44% as of 31st December ’22. Despite net outflows of ₹26,211 crore from foreign institutional investors during the quarter, FIIs’ share increased marginally to 20.56% on 31st March, marking a 32 basis point (bps) rise from 20.24% as of 31st December ’22.

Pranav Haldea, Managing Director of PRIME Database Group, noted that breaking the 25% threshold for the first time is emblematic of the Indian capital market’s steady march towards self-reliance, often referred to as “Atmanirbharta.”

Over the last eight years, a structural transformation has unfolded in the Indian market, significantly altering the balance between foreign and domestic investors. In 2015, FII ownership exceeded the combined share of DIIs, retail, and HNIs. However, this gap has steadily dwindled, with the latest figures indicating a remarkable reversal.