Recent support for Indian share prices is often ascribed to retail investor enthusiasm and data shows domestic institutional investors (DIIs) have broadly been big buyers.
The net equity investments of DIIs, which include banks, local financial institutions, insurance firms, retiral schemes and mutual funds, have crossed ₹5 trillion already in 2026, making it the third-straight year of that figure being exceeded.
They pumped in almost ₹7.9 trillion in 2025 and about ₹5.3 trillion in 2024. With more than four months to go, this year’s total is likely to exceed last year’s.
This suggests confidence in India’s economy and the health of India Inc. Economic indicators and corporate earnings have validated the optimism, even if unevenly.
In contrast, foreign portfolio investors have been selling Indian shares heavily for many quarters. Their recent re-entry, however, suggests the tide may be turning. Upmoves among technology stocks hint of a re-rating in the context of AI’s impact on this industry.
Abroad, America’s disinclination to persist with its Iran war is raising peace hopes. The cost of a Hormuz toll might already be priced in. Indian equities may soon put this year’s travails behind them.