Domestic Institutional Investors Hold Record 18.26% of Indian Equities Amid Flow Shift

Domestic institutional investors in India reached a record 18.26% equity ownership in September 2025, surpassing foreign institutions for the first time in over a decade. The rise is driven by strong retail inflows into mutual funds and insurance-linked vehicles, reducing dependency on foreign portfolio investment. Analysts believe this structural shift may increase market resilience during global outflow phases but warn that domestic flow concentration could also amplify internal risk cycles.