Indians quietly changed game of the stock market for the first time in 2 decades

It is often believed that foreigners. FIIs are behind the fall or rise of the market. But in the last few days, a historic change has been seen in the Indian stock market. For the last two decades, the stock market has been dominated by foreign institutional investors (FPIs), but now domestic institutional investors (DIIs) have taken over this game.

Indian or domestic investors have quietly changed the game of the stock market and shattered the pride of foreign investors

This is the first time that the share of Indian investors in the companies listed on NSE has become more than that of foreign investors. This change is not only a significant figure, but also a proof of the confidence and increasing economic understanding of Indian investors.

Game changed for the first time in 22 years

In the March 2024 quarter, the share of domestic institutional investors (including mutual funds, insurance companies, banks, etc.) in the stock market reached 16.05%. At the same time, the share of foreign institutional investors decreased to 15.78%.

That is, for the first time in 22 years, the hold of DIIs has become stronger than FPIs. This change can be called a silent revolution, because it has happened gradually and in an organized manner, without any commotion.

What does it mean?

 Stability in the market: Foreign investors often enter the market to take profit and then exit. In contrast, domestic investors invest with a long-term perspective, which gives stability to the market.

Increased trust in India: This change indicates that Indian investors are now trusting their country's companies and economy more.

Protection from global fluctuations: When foreign investors withdraw money, the market sees a huge decline. But now with the strength of DIIs, the market can be protected from such volatility.

 Summary

This change will not be limited to just numbers. In the coming years, investment habits in India will become even stronger. With the increase in financial literacy, more and more people are getting involved in investing. Also, various government schemes like PM-SYM, digital finance and fintech platforms are also playing an important role in this.

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