DII holdings in Nifty-500 hit record 21%; FII ownership falls to all-time low of 17%: Motilal Oswal
DII ownership in Nifty-500 companies increased by 160 basis points year-on-year and 20 basis points sequentially, to touch a record 21% in June 2026, a report said
Domestic institutional investors (DIIs) have solidified their grip on the Indian equity market, with their stakes in Nifty-500 companies reaching a record high of 21 percent, according to a report by Motilal Oswal Financial Services. This surge in DIIs' ownership follows sustained inflows into equities over the past few years, driven by robust domestic investment.
In contrast, foreign institutional investor (FII) holdings have plummeted to an all-time low of 17 percent, marking a significant downturn from 18.9 percent in June 2025. The report attributes this structural shift in institutional ownership to the continuous rise in DII holdings, which have reached 21 percent of Nifty 500 companies in run rate in June 2026, an increase of 160 basis points year-on-year and 20 basis points sequentially.
Meanwhile, FII ownership has experienced a year-on-year decline of 190 basis points and a quarter-on-quarter drop of 10 basis points, reflecting a notable reduction in foreign participation. The report also highlights a reversal in promoter ownership, with promoters' stake rising by 20 basis points year-on-year and 10 basis points quarter-on-quarter to 49.5 percent in June 2026, up from 49 percent in the previous period.
Domestic investors now hold a larger share of the market compared to foreign investors across the Nifty-500 universe, underscoring the growing influence of domestic capital in supporting Indian equities.
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