BAJAJ BROKING
Domestic institutional investors have net bought equities worth ₹5.3 lakh crore in 2025 so far, surpassing 2024’s peak. Mutual fund inflows and SIPs remain strong, though Indian benchmarks continue to trail global peers due to valuations, earnings momentum, and lighter foreign flows.
Disclaimer: This content has been published for informational purposes only. Bajaj Broking is not affiliated with, nor does it endorse or assume any responsibility for, the source material. Readers are advised to consult the original publication for complete and accurate context.
Sources: Financial Express, Mint, Economic Times | Published on September 22, 2025
Domestic institutional investors (DIIs) have set a new milestone in Indian equities this year. Net purchases so far stand at ₹5.3 lakh crore, already ahead of the ₹5.22 lakh crore recorded in 2024.
According to AMFI data reported by Financial Express and Mint, equity mutual fund inflows hit a record ₹42,702 crore in July 2025. August saw a pullback to ₹33,430 crore, a 22% decline, but still one of the strongest months historically.
Systematic Investment Plans (SIPs) remained consistent, with Economic Times reporting ₹28,464 crore in July SIP flows, well above the ₹15,000–18,000 crore monthly averages in 2024. Industry assets under management climbed to ₹75.36 lakh crore in July, before easing slightly to ₹75.18 lakh crore in August.
Also read: Ceigall India Becomes Lowest Bidder for Rs 1,700 Cr BESS
July 2025 inflows: ₹42,702 crore, the highest ever for equity mutual funds.
August 2025 inflows: ₹33,430 crore, 22% lower but still historically strong.
SIP flows: ₹28,464 crore in July, compared to ₹15,000–18,000 crore monthly averages in 2024.
Industry AUM: ₹75.36 lakh crore in July, easing to ₹75.18 lakh crore in August.
DII purchases: ₹5.3 lakh crore YTD (2025) vs ₹5.22 lakh crore in 2024.
Also Read: NBCC Secures Rs 117 Cr HUDCO PMC Contracts Across Four Indian Cities
The moderation in August reflected portfolio rebalancing after July’s record. Profit-taking in small-cap and thematic funds, alongside festive spending and real estate demand, diverted some flows.
Even so, Economic Times noted that domestic inflows continue to cushion the market against persistent FII selling. However, Indian benchmarks have delivered modest gains compared with global peers due to valuation and earnings pressures.
SIP discipline – Households maintain monthly contributions, anchoring mutual fund inflows.
Lack of alternatives – Lower real returns on deposits and bonds keep equities relevant.
Profit rotation – Some investors shift gains into real estate or consumption.
Retail expansion – Folio growth shows households embedding equity MFs in savings.
Index | 2025 YTD (Starting From Jan) Performance (INR) | Context & Drivers |
Sensex | +5% | Gains look slightly better in rupee terms, but valuations and earnings still kept upside limited. |
Nifty | +7% | Outperformed Sensex modestly; steady domestic inflows helped, though global benchmarks raced ahead. |
Shanghai Composite (China) | +14% | Stimulus-led rebound, but INR conversion trims the edge versus USD terms. |
Hang Seng (Hong Kong) | +17% | Tech and financial majors pushed higher; remains strong even after currency adjustment. |
DAX (Germany) | +33% | Earnings growth in exporters and easing energy risks drove gains; INR impact marginal. |
CAC 40 (France) | +18% | Luxury and industrial stocks supported performance; INR adjustment narrows gap slightly. |
This comparison highlights the divergence: while Indian markets remain supported by domestic savings, global peers are gaining from stronger earnings cycles, lower valuations, and higher foreign inflows.
Metric | 2024 (Full Year / Avg) | 2025 (YTD / Latest) | Source |
DII Equity Purchases | ₹5.22 lakh crore | ₹5.30 lakh crore (YTD 2025) | ET |
Equity MF Inflows | ₹2.75 lakh crore | ₹42,702 crore (Jul), ₹33,430 crore (Aug) | FE, Mint |
Monthly SIP Flows | ₹15,000–18,000 crore avg | ₹28,464 crore (Jul 2025) | ET |
Industry AUM | ~₹50 lakh crore avg | ₹75.36 lakh crore (Jul), ₹75.18 lakh crore (Aug) | ET |
FII Ownership | ~16% (2024), down from 22% in 2019 | Net selling in 2025 | ET |
July’s record inflows underline the growing strength of domestic savings. SIPs remain the backbone of this momentum, while August’s moderation reflected profit-taking and household spending rather than weakness.
Global peers, however, have delivered stronger returns, shaped by different dynamics — valuation discounts, stronger earnings growth, and heavier foreign inflows. This underlines the evolving balance: India’s markets are increasingly driven by domestic participation, even as international capital continues to move selectively across regions.
Also Read: Zydus’ Ahmedabad oncology injectable plant: USFDA GMP report
Share this article:
Disclaimer :
The information on this website is provided on "AS IS" basis. Bajaj Broking (BFSL) does not warrant the accuracy of the information given herein, either expressly or impliedly, for any particular purpose and expressly disclaims any warranties of merchantability or suitability for any particular purpose. While BFSL strives to ensure accuracy, it does not guarantee the completeness, reliability, or timeliness of the information. Users are advised to independently verify details and stay updated with any changes.
The information provided on this website is for general informational purposes only and is subject to change without prior notice. BFSL shall not be responsible for any consequences arising from reliance on the information provided herein and shall not be held responsible for all or any actions that may subsequently result in any loss, damage and or liability. Interest rates, fees, and charges etc., are revised from time to time, for the latest details please refer to our Pricing page.
Neither the information, nor any opinion contained in this website constitutes a solicitation or offer by BFSL or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.
BFSL is acting as distributor for non-broking products/ services such as IPO, Mutual Fund, Insurance, PMS, and NPS. These are not Exchange Traded Products. For more details on risk factors, terms and conditions please read the sales brochure carefully before investing.
Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For more disclaimer, check here : https://www.bajajbroking.in/disclaimer
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading