Even though there is a decline in the stock market, foreign investors have withdrawn more than Rs 77 thousand crore from the stock market in about 3 weeks. On the contrary, domestic investors have increased their investments in the stock market much more. The special thing is that in the year 2026, domestic investors have invested more than Rs 2 lakh crore in the stock market. Under which the first investment of Rs 1 lakh crore was made in 39 trading days. Secondly, an investment of Rs 1 lakh crore has been made in just 12 business days. Which is the fastest investment till date. This surge in investment by domestic investors has been seen after a big fall in the Indian markets. Let us also tell you what kind of figures have come out regarding domestic investors.
Investment of Rs 2 lakh crore in 2026
According to the Money Control report, so far in 2026, domestic institutional investors i.e. DIIs have invested more than Rs 2.03 lakh crore in equities. They have continued their strong participation after a record investment of more than Rs 7.75 lakh crore in 2025 and more than Rs 5.23 lakh crore in 2024. If we look at the past figures, domestic investors have continuously increased their stake in the stock market. In 2025, the first Rs 1 lakh crore mark was achieved in 31 trading days, after which the next phases were completed in 35, 39, 37, 21, 38 and 26 sessions. In 2024, the first five tranches were completed in 57, 40, 58, 36 and 45 sessions respectively, while in 2023 it took 158 trading days to cross the Rs 1 lakh crore mark.
Big investment amid challenges
The sustained buying has come at a time when valuations are high, earnings growth is slow, there are no listed artificial intelligence companies in the domestic market, and there is persistent selling pressure from foreign institutional investors (FIIs). This rally continued even when crude oil prices rose above $100 per barrel, posing a risk to India’s macroeconomic stability. Since the country imports about 85 to 90 percent of its crude oil requirements, higher oil prices are expected to have an impact on the trade balance, inflation and fiscal position.
Why did investment by domestic investors increase?
Nikunj Saraf, CEO of Choice Wealth, said in a Money Control report that the recent decline in the market is mainly due to global uncertainties – including geopolitical tensions and rising oil prices. At the same time, domestic institutional investors (DIIs) are seeing this decline as an opportunity rather than a concern. He said that since this decline is not due to weak domestic fundamentals, domestic investors are taking advantage of low valuations and buying good quality shares. Apart from this, the recent rise has also been supported by ‘value buying’ (buying cheaply) after the big fall. On March 17 and 18, some relief was seen in the Indian benchmark indices, and during this period Sensex and Nifty increased by about 2 percent. However, the broader market remained volatile; Fluctuation continued in BSE MidCap 150 and BSE SmallCap 250 indices.
Where is domestic investment coming from in the stock market?
The market has been supported by the continuous inflow of domestic capital. Investments coming from Systematic Investment Plans (SIPs), mutual funds, insurance and pension funds have given a strong base to the market. This regular investment creates a reserve of capital which is used when the market falls – thereby further intensifying buying activity. This trend also reflects a structural change in the Indian markets. Earlier, Indian markets were heavily dependent on foreign investors. Now, strong liquidity in the domestic market is helping to absorb the selling pressure and keep the market stable – even at a time when foreign investors are continuously pulling out their money.
How much will the stock market fall this year?
So far in the year 2026, both Sensex and Nifty have fallen by more than 10 percent. At the same time, a decline of more than 9 percent and 12 percent has been recorded in BSE MidCap and SmallCap indices respectively. The special thing is that in the current month, foreign investors have withdrawn Rs 77,214 crore. Whereas in the current year the withdrawal figure has reached Rs 90,561 crore. Saurabh Jain, Head of Fundamental Research at SMC Global Securities, said in a media report that while FIIs are still cautious and the mood of retail investors is mixed, DIIs are doing the opposite. They are continuing to inject domestic liquidity and withstand selling pressure, which is stabilizing the markets and reinforcing the structural shift towards financial assets.