Who’s the biggest bull? DIIs have left FIIs behind in last 7 years

“DII ownership of Indian equities increased to 14.2 per cent in June 2022 from 10.9 per cent in June 2012, while FII ownership diminished to 18.4 per cent in June 2022 from 22.5 per cent in March 2015,” the report said adding that FII holding is now at its lowest in the last 10 years.

After witnessing massive inflows of $38.5 billion over April 2020-September 2021, FII flows reversed the trend with an outflow of $33.3 billion from Oct’21-Jun’22. However, despite FII outflows, Nifty has managed to remain flat on a year-to-date basis in the calendar year 2022.

Despite the inflows and outflows, total institutional ownership of Indian equities has remained stable at around one-third over the last five years.

Data shows that over the last 30 years beginning FY 1993, FIIs have invested $190.8 billion in the Indian equity markets. The six-year period – FY10-15 – was the peak with cumulative FII inflows of $114.5 billion. After peaking in FY15, FII inflows tapered off to a cumulative figure of $11 billion over FY16-20. Inflows revived in FY21 at $37.3 billion, post which, FY22 saw the highest ever outflows in a year at $17.1 billion with $8.6 billion of outflows being recorded in FY23YTD.

Over the last 23 years beginning FY 2000, DIIs have invested $90.6 billion in the Indian equity market. The report pointed out that a large part of the DII flows ($86.7 billion) was recorded over the last eight years (FY16-23YTD).

In the June quarter, sectors recording the highest FII outflows were technology ($4.2 billion), private banks ($3.8 billion), NBFC ($2.5 billion), oil & gas ($1 billion), and metals ($0.8 billion).

Nifty50 stocks form 70 per cent of total FII holdings in India while Nifty500 accounts for 98 per cent share. The brokerage report said the top 10 stocks account for 46 per cent share.

Private banks account for over 20 per cent of FII holdings, followed by oil and gas (

), NBFCs, consumer and auto stocks.

When it comes to domestic investors, private banks hold the top spot with over 15 per cent holding, followed by financials, oil and gas, technology, consumer and auto.