Domestic Institutional Investors (DIIs) continued their strong support for Indian equities, with their net investment crossing ₹5 trillion for the third consecutive calendar year in 2026.
According to stock exchange data cited by Moneycontrol in a report, DIIs invested ₹5.13 trillion in the equity market till Aug 7, compared with ₹4.48 trillion during the same period in CY25.
DIIs include banks, domestic financial institutions, insurance companies, new pension schemes and mutual funds. In the full calendar year 2025, domestic institutions invested ₹7.88 trillion, while their net inflows stood at ₹5.26 trillion in CY24, according to BSE data.
Over the past 36 months since August 2023, DIIs have invested ₹19.21 trillion in Indian equities. This contrasts with foreign portfolio investors (FPIs), who sold stocks worth ₹10 trillion during the same period.
Strong economy supports DII inflows
Market analysts believe sustained DII buying has been driven by the resilience of the Indian economy despite geopolitical challenges, including tensions in West Asia.
Stable GST collections, absence of major economic shocks and strong inflows into equity and balanced mutual fund schemes have helped domestic investors deploy more capital into markets.
According to the report, analysts at Motilal Oswal Financial Services said easing geopolitical concerns, softer energy prices, improving corporate earnings and market valuation corrections from CY24 highs have improved the risk-reward balance for equities.
They expect sentiment towards Indian stocks to remain positive as foreign investor flows have also turned favourable after a prolonged selling phase.
DIIs increase exposure across sectors
A Motilal Oswal report showed that DIIs were overweight on sectors including consumer goods, PSU banks, oil and gas, telecom, metals and technology during the June 2026 quarter. However, they remained underweight on private banks, NBFCs, capital goods, chemicals, real estate, healthcare and automobiles.
The top five stocks held by DIIs by value in the June 2026 quarter were HDFC Bank, ICICI Bank, Reliance Industries, ITC and State Bank of India. These five companies together accounted for around 20% of the total DII holding value, according to Motilal Oswal.