New Delhi: The Department of Economic Affairs of Ministry of Finance said in its monthly economic review that the Indian stock markets experienced a significant increase in October 2025. The finance ministry report stated that the equity markets jumped due to GST 2.0 and the persisitent purchase by domestic institutional investors (DIIs), enabling the Indian equity market to remain resilient amidst persistent global volatility.
The MSCI India (IMI) Index has registered an increase of 4.2 per cent (MTD) in October 2025 and a YTD growth of 2.9 per cent as of November 14, 2025.
In October 2025, foreign portfolio investors (FPIs) pumped in money to buy equities in the Indian market after being net sellers for four consecutive months. As of November 17, 2025, FPIs remain net sellers with a net outflow of Rs 3.5 thousand crore, the Finance Ministry report mentioned.
The DIIs have relentlessly infused huge money and remained the net buyers in Indian equities, effectively countering FPI selling and reinforcing the strength of the domestic market.
“The increasing significance of DIIs as large net buyers is further reflected in their rising shareholdings. According to data compiled and published by PRIME Infobase, the share of DIIs (by value of holdings) surpassed that of foreign institutional investors (FIIs) for the first time in Q4 FY25 and has now reached an all-time high in Q2 FY26.9 In Q2 FY26, the share of DIIs (by value of holdings) stands at 18.3 per cent while that of the FIIs stands at 16.7 per cent, a 13-year low,” the Finance Ministry stated.
Mutual Funds in October 2025
Domestic Mutual funds (MFs) are the main contributors of the share of DIIs hwich have surpassed the FIIs. In Q2 FY26, the share of MFs (by value of holdings) reached an all-time high of 10.9 per cent. “Therefore, even though FIIs remain important participants in the Indian capital market, DIIs, along with retail investors and high-net-worth individuals, have been playing a strong counterbalancing role to the decisions made by FIIs regarding market participation. The combined share of DIIs, retail investors, and high-net-worth individuals reached an all-time high of 27.8 per cent in Q2 FY26,” the report stated.
(Information has been taken from dea.gov.in)