In a significant shift in the Indian equity landscape, domestic investors and mutual funds are emerging as the dominant force in the stock market, as foreign portfolio investments (FPIs) continue to decline.

Foreign Holdings Hit 15-Year Lows

According to a recent NSE report titled “Who Owns India Inc? – DMFs Extend Record Run as FPIs Hit 15-Year Lows”, foreign investors’ holdings in Indian companies have dwindled sharply over the past few years. Total FPI stake in listed companies has fallen to 16.9%, the lowest in 15 years.

Specifically, FPIs’ share in Nifty 50 and Nifty 500 companies has dropped to 24.1% and 18%, respectively—the lowest levels in 13 years. During the latest quarter ending September 2025, foreign funds withdrew $8.7 billion from the market, driving this decline.

Promoters and Domestic Investors

The report also highlights a consistent decline in promoter holdings. In Nifty 50 companies, promoter stakes have fallen to 40%, the lowest in 23 years, marking the sixth consecutive quarter of decline. Overall promoter holding in all NSE-listed companies remains at 50.1%, while it is 49.3% in Nifty 500 firms.

Meanwhile, domestic mutual funds (DMFs) continue to strengthen their presence. Driven by steady SIP inflows and consistent equity purchases, domestic funds’ total holdings have climbed to a record 10.9%, the highest ever, marking nine consecutive quarters of new highs. For the fourth straight quarter, domestic institutional investors invested more than FPIs—a scenario last observed in 2003.

Retail Investors Gain Clout

Direct ownership by individual investors has remained steady at 9.6%. When combined with mutual fund holdings, retail investors now control 18.75% of the market, the highest in 22 years. This trend underscores the growing influence of domestic investors and mutual funds in shaping the Indian stock market.

As foreign capital retreats, “the common investor and domestic mutual funds have become a formidable force in India’s equity markets,” the NSE report concludes.