Domestic Institutional Investors (DIIs) have strengthened their position in Indian equities, while Foreign Portfolio Investor (FPI) ownership has slipped to a 17-year low, according to the March 2026 edition of the “India Inc Ownership Tracker” report released by the National Stock Exchange of India Limited.
The latest India Inc Ownership Tracker report highlighted that FPI ownership in NSE-listed companies declined sharply to 15.8%, down 90 basis points quarter-on-quarter, marking its lowest level in 17 years.
In contrast, DII ownership expanded to an all-time high of 19.6%, marking the sixth consecutive quarter in which DIIs have held a larger share than FPIs.
The report stated that promoter ownership also edged back to the 50% mark after briefly falling below it in the previous quarter.
According to the India Inc Ownership Tracker, the decline in FPI ownership was broad-based across benchmark indices. FPI ownership in the Nifty 50 dropped to a 14-year low of 21.8%, while ownership in the Nifty 500 declined to 16.8%.
The report noted that net FPI outflows stood at US$14.2 billion during Q4FY26, taking total FY26 net outflows to a record US$19.6 billion.
Within the NSE free float universe, FPI ownership fell to 31.6%, which is now 14.1 percentage points below its March 2014 peak.
In value terms, FPI holdings declined 17.9% quarter-on-quarter to ₹64.6 lakh crore due to the sharp market correction during the March quarter.
However, the India Inc Ownership Tracker observed that despite declining ownership levels, the value of FPI investments has grown at an annualised 18.5% in rupee terms since March 2020.
The report further noted that FPIs have remained net buyers of Indian equities in 20 of the last 27 years, reinforcing India’s long-term appeal as a destination for foreign portfolio investments.
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DII Ownership Surpasses FPIs Across Market Universes
The India Inc Ownership Tracker revealed that the continued rise in domestic participation pushed total DII ownership to a record high of 19.6%, up 56 basis points quarter-on-quarter.
DIIs now hold a larger share than FPIs across the NSE-listed universe, the Nifty 50, and the Nifty 500. According to the report, this position was last seen in 2003, with the DII-FPI ownership gap widening to 3.8 percentage points, the widest in over 100 quarters.
Domestic Mutual Funds (DMFs) continued their record run, with ownership rising to an all-time high of 11.4%, up 35 basis points quarter-on-quarter.
The report stated that this marked the eleventh consecutive quarterly high for DMF ownership and placed it around 3.35 percentage points higher compared to three years ago.
The India Inc Ownership Tracker attributed this growth primarily to sustained inflows. Q4FY26 marked the twentieth consecutive quarter of positive net inflows, with DMFs investing a record ₹5.37 lakh crore during FY26.
Average monthly SIP inflows during Q4FY26 rose 3.3% quarter-on-quarter and 18.7% year-on-year to ₹30,978 crore. March 2026 recorded an all-time high monthly SIP inflow of ₹32,087 crore, marking the twenty-second consecutive quarter of sequential growth in SIP inflows.
The report noted that this momentum reflects the resilience of retail participation and points toward a structural deepening of household engagement with capital markets, gradually reducing the sensitivity of Indian equities to global shocks and episodic FPI outflows.
Passive Funds Continue to Gain Traction
The India Inc Ownership Tracker highlighted the rapid growth of passive investment strategies in India.
Passive equity fund assets under management (AUM) have grown at a CAGR of 48.9% over the last decade, significantly higher than the 25.4% CAGR recorded by active funds, albeit from a smaller base.
During Q4FY26, passive equity fund AUM declined 9.4% quarter-on-quarter to ₹8.7 lakh crore. However, its ownership share increased by 9 basis points to an all-time high of 2.1%.
Actively managed equity fund AUM declined 10.7% quarter-on-quarter to ₹38.1 lakh crore, while ownership rose 26 basis points to a record high of 9.3%, marking the eleventh consecutive quarterly increase, supported by strong SIP inflows.
Promoter Ownership Returns to 50%
The India Inc Ownership Tracker stated that promoter ownership in NSE-listed companies increased 15 basis points quarter-on-quarter to 50%.
The report said the recovery was mainly driven by higher government and foreign promoter stakes, while private Indian promoter ownership fell 42 basis points quarter-on-quarter to a 27-quarter low of 31.8%.
In value terms, promoter holdings declined 12.9% quarter-on-quarter to ₹204 lakh crore, in line with the broader market correction, as the Nifty Total Market Index fell 14.1% during the quarter.
Government ownership in NSE-listed companies rose 46 basis points quarter-on-quarter to a six-quarter high of 10.3%.
The India Inc Ownership Tracker linked this increase to the relative outperformance of CPSE stocks, with the Nifty CPSE Index rising 8.4% during the quarter against a 14.1% decline in the Nifty Total Market Index.
Sector-wise, government ownership remained concentrated in Financials, Energy, Utilities, and Industrials, which together account for over 88% of government holdings in NSE-listed companies.
Individual Investors Continue to Deepen Market Participation
The India Inc Ownership Tracker reported that direct individual ownership declined 17 basis points quarter-on-quarter to a five-year low of 9.1%.
However, on a combined basis — including direct holdings and investments through DMFs — individuals as non-promoter shareholders now hold 18.7% of the market, exceeding FPI ownership for the sixth consecutive quarter.
The report pointed out that the ownership gap, which stood at 11 percentage points in favour of FPIs in March 2014, has now reversed to 2.9 percentage points in favour of individuals.
The number of unique registered investors on NSE has nearly quadrupled over the last six years to over 13 crore as of April 2026.
Total household holdings, including direct and indirect ownership, stood at ₹76.5 lakh crore and have grown at a CAGR of 29.6% since March 2020.
Portfolio Concentration Remains Contained
According to the India Inc Ownership Tracker, FPIs currently hold positions in 2,217 companies, up from around 1,200 companies five years ago.
The report stated that FPIs hold significant stakes of over 5% in 762 companies, accounting for 34.4% of total FPI investments, well below the nearly 50% levels seen before the pandemic, indicating greater portfolio dispersion.
DMFs now hold stakes in a record 1,481 companies, with significant holdings in 699 companies. These positions account for 47.2% of their investee base, the second-highest proportion on record.
