DII Equity Buying Crosses ₹5 Trillion For Third Consecutive Year

Domestic Institutional Investors (DIIs) have invested a net ₹5.13 trillion in Indian equities so far in calendar year 2026, taking their annual purchases above ₹5 trillion for the third consecutive year, according to stock exchange data.

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Domestic Flows Continue To Rise

DIIs, which include mutual funds, insurance companies, banks, domestic financial institutions and new pension schemes, had invested ₹4.48 trillion during the corresponding period of 2025. Their full-year net investment stood at ₹7.88 trillion in CY25, compared with ₹5.26 trillion in CY24.

The latest data covers the period through August 7, 2026. Over the past 36 months, DIIs have collectively invested ₹19.21 trillion in Indian equities.

The sustained domestic flows have come even as foreign portfolio investors (FPIs) have remained net sellers. FPIs sold ₹10 trillion worth of Indian equities over the same 36-month period.

Mutual Fund Flows Support Domestic Buying

U R Bhat, Co-founder and Director at Alphaniti Fintech, said strong goods and services tax collections, the absence of major negative economic surprises and continued flows into equity and balanced mutual fund schemes have supported DII investments.

The domestic flows have provided a source of demand for Indian equities as global investors have adjusted their exposure to emerging markets.

Motilal Oswal Financial Services said in a recent note that easing geopolitical risks, softer energy prices, improving corporate earnings and the correction in valuations from their CY24 peaks have improved the risk-reward profile of Indian equities.

The brokerage also noted that foreign flows had turned positive after four months of heavy selling.

DIIs Increase Exposure To Select Sectors

During the June 2026 quarter, DIIs were overweight in Consumer, PSU Banks, Oil & Gas, Telecom, Metals and Technology within the Nifty 500, according to the Motilal Oswal report.

They remained underweight in Private Banks, NBFCs, Capital Goods, Chemicals, Real Estate, Healthcare and Automobiles.

Elara Capital said DII ownership has risen steadily over the past 12 quarters and remains close to record levels. DII ownership stood at 25.5% of the Nifty 50, 17.1% of the NSE Midcap 150, 15.6% of the NSE Smallcap 250 and 20% of the NSE 500.

Large Banks Lead DII Holdings

According to Motilal Oswal Financial Services, HDFC Bank had the largest DII holding value at $47.2 billion in the June 2026 quarter, followed by ICICI Bank at $44.3 billion and Reliance Industries at $38.9 billion. ITC and State Bank of India followed with holdings worth $27.4 billion and $26.5 billion, respectively.

These five stocks accounted for 20% of the total DII holding value. Movements in the HDFC Bank share price, ICICI Bank share price and other heavily held stocks can therefore have a significant bearing on the value of domestic institutional portfolios.

Elara Capital also noted higher quarterly additions by domestic investors across auto, banks, cement, chemicals, consumer discretionary, financials, healthcare, real estate, sugar and transport, while exposure declined marginally across several other sectors.

With DII net buying already above ₹5 trillion by early August, domestic institutional flows remain a significant feature of the Indian equity market in 2026.