When domestic investors hit the Street

FOR YEARS, foreign portfolio investors (FPIs) were the pacesetters for Indian equities. A single sell order from Singapore or New York would send shivers down D-Street. But the balance of power is shifting. Today, even as FPIs withdraw billions, the stock market is holding its ground, courtesy of an army of domestic investors who are rewriting the rules of the game with steady inflows.

Between FY22 and FY25, FPIs offloaded shares worth nearly ₹96,500 crore, turning net sellers in three of the past four years. Year-to-date (till August 22), they’ve sold another ₹1.96 lakh crore worth of shares, including ₹22,217 crore in August alone. Yet, the Nifty50 has gained more than 5% this year. Meanwhile, on strong macro indicators, expectations of GST rationalisation, and an upgrade in India’s sovereign credit rating by S&P, domestic institutional investors (DIIs) have pumped in ₹4.85 lakh crore so far this year.