Mumbai: Foreign and domestic investors turned buyers of Indian equities in March 2025. Both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) emerged as net buyers in the Indian equity market in last month.
FIIs invested $975 million while DIIs made contributions with $4.3 billion in net purchases during the month. In the first half of March, up to the 19th, FIIs were net sellers, but they turned aggressive buyers in the latter half, pouring $3.6 billion into Indian equities.
This shift helped push FII shareholding in Indian stocks up to 16.8 per cent in March, compared to 15.9 per cent in February. The sectors that attracted the most foreign inflows included banking, financial and insurance services (BFSI), telecom, and metals. BFSI led the way with $1.7 billion in FII inflows, followed by telecom at $360 million, and metals at $219 million.
Other sectors that gained investor attention, albeit at a smaller scale, were realty, chemicals, media, and pharmaceuticals. BFSI, IT, Oil & Gas, Auto, and Pharma together accounted for nearly 60 per cent of total FII holdings in Indian equities.
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The share of BFSI in FII Assets Under Custody (AUC) in India rose to 31.2 per cent in March from 30.8 per cent in February, while Pharma’s share edged up to 6.9 per cent from 6.8 per cent. However, IT services — the second-largest sector for FII holdings — saw its share decline to 9 per cent from 9.9 per cent in the previous month.
Foreign institutional investors (FII) or Foreign portfolio investors (FPI) are those who invest in the financial assets of a country while not being part of it. On the other hand, Domestic Institutional Investors (DII) are those who invest in the country they are living in. Both types of investors can impact the economy’s net investment flows.
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