FII ownership in Nifty 50 drops to 22.4% as DII hits record 26.2%
GS3Economy · S&T · Environment · Security· Capital markets & SEBI· Prelims·
Capital Markets: Shift in shareholding patterns reflects increasing domestic liquidity and market stability.
Why in news
Motilal Oswal reported a significant shift in shareholding patterns where FII ownership in the Nifty 50 dropped to 22.4% while DII ownership hit a record 26.2% in the September quarter.
Background
FII ownership in the Nifty 50 declined by 230 basis points year-on-year to 22.4%. DII ownership rose to a record 26.2%, with DIIs investing $17.7 billion in Indian equities during Q2 FY27 compared to $700 million by FIIs.
Facts for Prelims
- FactFII ownership in Nifty 50: 22.4% (September quarter)
- FactDII ownership in Nifty 50: 26.2% (Record high)
- FactFII ownership in Nifty 500: Fell to 16.8% in September
- FactDII investment in Indian equities (Q2 FY27): $17.7 billion
- FactMonthly SIP inflows: Approximately $3.4 billion
Prelims practice question
What was the total amount of DII investment in Indian equities during Q2 FY27?
- (a)$17.7 billion
- (b)$10.5 billion
- (c)$22.1 billion
- (d)$14.3 billion
Show answer
Answer: (a) $17.7 billion — The note states that DIIs invested $17.7 billion in Indian equities during Q2 FY27.
For Mains
Q. Analyze the implications of increasing domestic institutional investment and decreasing foreign portfolio investment on the stability of the Indian capital markets.
Dimensions to cover in your answer
- Market resilience: Domestic liquidity acting as a buffer against volatile foreign capital outflows
- Structural shift: Transition from foreign-led to domestic-led equity participation in large-cap stocks
Keywords: Capital Markets · FII · DII · Liquidity · SIP · Shareholding Pattern
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This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.