DII holdings in the Nifty-50 universe have surged to a record high of 23.6% as of March 2025, marking a significant rise in institutional interest. According to a report by domestic brokerage firm Motilal Oswal, DII holdings in the Nifty-500 have also reached an all-time high of 19.2%, up 240 basis points year-on-year and 40 basis points quarter-on-quarter. Meanwhile, FIIs have continued to reduce their exposure, trimming stakes in more than 80% of the Nifty-500 stocks.
The report further highlighted that DII holdings in 42 Nifty-50 companies increased on a YoY basis, whereas FIIs reduced their holdings in 38 companies. The report also noted that FIIs cut stakes in 41 stocks on a quarterly basis while DIIs raised stakes in 41 stocks. Motilal Oswal emphasised that this shift in holdings reflects a broader trend of growing domestic investor participation amid ongoing market volatility.