Domestic investors have invested more than Rs 6 lakh crore in the current year.
In view of the continuously increasing investment of domestic investors, a famous song from the film ‘Apne’ has been remembered a lot, its lyrics are ‘Apne toh apne hote hain’… In the current year, the indifference of foreign investors and the record investment of domestic investors is telling a lot. The year is not over yet and domestic investors have crossed the level of total investment for the year 2025. This is also the reason why despite tremendous profit booking by foreign investors, both Sensek and Nifty are still looking positive. Both are seeing a growth of more than 5 percent in the current year.
Look at the figures, in the current calendar year, domestic investors have invested more than Rs 6 lakh crore in the stock market. Whereas there is still about two and a half months left for the year 2025 to end. Whereas in the last year, domestic investors had invested more than Rs 5.25 crore. This is the first time that domestic investors have made such a huge investment. Let us also tell you what kind of story the market figures are telling.
investment of 6 lakh crores
Domestic institutional investors have made huge investments in the stock market in the current year. If we look at the figures, foreign investors have made a net investment of Rs 6 lakh in the current calendar year, which is the highest amount made in any calendar year since BSE started maintaining the data in 2007.
According to BSE data, in the year 2025, net investment by DIIs, which include banks, domestic financial institutions (DFIs), insurance companies, new pension schemes and mutual funds, is expected to exceed Rs 6 lakh crore. Whereas in the year 2024, these investors had invested more than Rs 5.26 trillion in the Indian stock market.
Rishi Kohli, Chief Investment Officer, Jio BlackRock AMC, expects this momentum to continue, mainly because SIP investments remain strong despite market downturns. He said in the Business Standard report that unless any global shock causes a decline of 30-40 percent, DIIs should continue to invest strongly. I would not be surprised if DII investment in 2026 crosses 2025 levels.
Heavy selling by foreign investors
Meanwhile, strong domestic investment offset selling by foreign portfolio investors (FPIs) who pulled out $23.3 billion (Rs 2.03 lakh crore) from domestic stock markets during CY25, data from National Securities Depository Ltd (NSDL) showed. However, according to the data, in calendar year 25 they invested $5716 million or Rs 49,590 crore through the primary market and other channels.
Mahesh Patil, Chief Investment Officer, Aditya Birla Sun Life AMC, said in the BS report that the most busy trading areas for foreign institutional investors (FIIs) have been the US, China, Germany and Brazil. He said that these are the markets where relative investment has been highest and as a result, overall market returns have been better. On the other hand, foreign investors have booked maximum profits in the markets of Japan, India, Vietnam and South Korea.
Domestic investors made profits
G Chokkalingam, founder and research head of Equinomics Research, was quoted as saying by media reports that since the Lehman Brothers crisis in 2008, whenever the domestic market declined and foreign institutional investors made heavy sales, domestic institutional investors (DIIs) have made huge profits by aggressive buying.
He said that this cycle of ups and downs in the domestic market has been continuously working for the domestic institutional investors (DIIs) for the last 17 years. Chokkalingam suggested that panic selling has always proved to be a mistake for foreign institutional investors (FIIs), while supporting the markets at such times has always proved beneficial for domestic institutional investors (DIIs).
Chokkalingam said that he expects that as investments in insurance and pension funds increase, their net investment in equities will remain strong. However, the scale at which they are buying may not continue, as the market is near record highs and retail investments in mutual funds are likely to be subdued.
How did you handle the stock market?
Despite the US government imposing 25 per cent tariffs on India from August 7 and 25 per cent from August 27, equity markets remained strong during the period due to record investments by domestic institutional investors (DIIs). So far in the year 2025, the BSE Sensex and Nifty 50 indices are up 5.8 percent and 4.4 percent respectively.
However, according to the data, so far in the year 2025, the BSE Smallcap index has fallen by 5.6 percent, while the BSE Midcap index is down by 1.6 percent. Patil said that the most crowded sectors for DIIs in the last one year have been BFSI, Capital Goods, Health Services and Auto, where DIIs have increased their weighting.
Sonam Udasi, senior fund manager, Tata Asset Management, quoted the BS report as saying that in the medium term, domestic investors will continue to dominate Indian equities through mutual funds and SIPs, which will provide strength against foreign capital outflows. Udasi said the monthly domestic investment of more than Rs 25,000 crore reflects the growing base of local investors. If tariff concerns subside, global investors may eventually catch up.