
Mumbai- Domestic institutional investors (DIIs) have injected $81.3 billion into Indian equities in 2025 so far, surpassing the total inflows recorded in all of 2024, even as foreign institutional investors (FIIs) pulled out $16.2 billion, according to a report released on Thursday.
Motilal Oswal Financial Services Ltd. (MOFSL) reported that companies under its coverage posted a 12% year-on-year earnings growth in Q2 FY26. In comparison, Nifty earnings rose just 2%, marking the sixth straight quarter of single-digit profit-after-tax (PAT) growth.
Mid-cap and small-cap stocks outshone large caps during the quarter. PAT for the Nifty Midcap-150 climbed 27% year-on-year, while Nifty Smallcap-250 earnings surged 37%.
DIIs recorded strong inflows of $8.7 billion in November, registering their 28th consecutive month of net buying. In contrast, FII flows for the month remained mostly unchanged.
About 60% of Nifty companies ended November on a positive note. Technology, PSU banks, and healthcare sectors saw notable month-on-month gains, while PSU banks, auto, and metals led performance in 2025 so far.
Despite pressure on India’s manufacturing sector due to US tariffs, domestic demand has continued to show resilience. The report highlighted that consumption improved in Q2 following GST rate cuts, and increased government expenditure in Q3 is expected to help offset weak exports.
India’s forex reserves remained strong at $688 billion, while the rupee traded at ?89.5 per US dollar.
Average daily cash market volumes rose 6% month-on-month, and futures & options (F&O) activity reached the second-highest level of 2025.
Although the Nifty index hit a fresh all-time high in November 2025, India’s total market capitalisation stood at $5.3 trillion — slightly below the peak seen in September 2024. The country’s share in global market capitalisation eased to 3.6%, compared to 4.7% in September 2024, as global markets outperformed, the report said.
With inputs from IANS