Indian EquitiesForeign InvestorsDomestic Institutional InvestorsStock MarketEconomic Trends
Foreign Investor Share in Indian Equities Hits 14-Year Low
Published: May 9, 2026
Loading article...
Loading article...
Foreign investors have cut their share in Indian equities to 14.7% in April 2026, down from 19.9% in April 2016, according to a report by JM Financial's Fundamental Research. Meanwhile, domestic institutional investors (DIIs) have increased their ownership to 18.9%, with domestic mutual funds reaching record highs due to steady Systematic Investment Plan (SIP) inflows.
The report attributes this shift to foreign investors pulling out of the market, with domestic institutions filling the gap. DIIs increased their holdings in 39 out of 41 Nifty stocks where foreign investors sold, absorbing foreign exits.
The sectoral shift is clear, with foreign investors moving towards earnings-resilient sectors such as Communication Services and Healthcare, and away from domestic consumption, commodities, and rate-sensitive financials. However, some sectors like Capital Goods and Telecom continued to attract foreign money.
The report highlights that individual stocks like KPIT Technologies, Axis Bank, and Patanjali Foods saw significant reduction in foreign investor holdings, while companies like 360 ONE, GE Vernova T&D, and One 97 saw increased stakes. The court will resume hearing on the impact of this shift on the stock market, with regulators and market experts set to discuss the implications of this trend.