Foreign institutional investors (FIIs) hold $717 billion in Indian equities, but they have reduced their exposure across 56% of Nifty 500 companies and 70% of Nifty 50 constituents over the past year. By September 2026, foreign ownership in the Nifty 500 fell to a low of 16.8%, while domestic institutional investor (DII) ownership climbed to a record 21.3%. Driven by strong retail participation and monthly systematic investment plan inflows averaging $3.4 billion, DIIs invested $17.7 billion in the second quarter…
Key points
Domestic institutional investor ownership reached a record 21.3% in the Nifty 500 as loca…: Domestic institutional investor ownership reached a record 21.3% in the Nifty 500 as local funds expanded stakes across 69% of index companies.
Foreign investors redirected selective capital into primary market issues while pruning b…: Foreign investors redirected selective capital into primary market issues while pruning broader secondary market holdings due to adverse global headwinds.
Banking, financial services, and insurance remains the largest destination for foreign ca…: Banking, financial services, and insurance remains the largest destination for foreign capital at 33.1%, followed by automobiles, healthcare, and oil and gas.
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HDFC Bank topped the list with FII holdings worth $54.3 billion, followed by ICICI Bank at $50.1 billion. Reliance Industries accounted for $30 billion, Bharti Airtel $29.2 billion and Axis Bank $16.4 billion.
In terms of sectoral allocation, banking, financial services and insurance (BFSI), including banks, capital markets, insurance and NBFCs, remained the largest exposure for FIIs in the Nifty 500 at 33.1% as of September 2026. However, the allocation moderated by 130 basis points sequentially and 120 basis points year-on-year. FIIs remained overweight on the sector by 340 basis points compared with its 29.8% weight in the Nifty 500.
Automobiles were the second-largest sectoral allocation, accounting for 8.1% of FII holdings, up 20 basis points quarter-on-quarter but down 10 basis points year-on-year. Healthcare accounted for 7.4%, with its share rising 60 basis points sequentially and 130 basis points annually. Oil and Gas had a 6.2% allocation, down 20 basis points quarter-on-quarter and 60 basis points year-on-year, while Technology accounted for 5.7%, up 60 basis points sequentially but down 160 basis points annually.
Rapid market swings and persistent security vulnerabilities continue to challenge the digital asset sector as adoption expands. A massive security breach at the world's largest exchange recently exposed billions of dollars, underscoring ongoing storage and custody hazards. Meanwhile, fluctuating political support and structural updates among major blockchains drive sharp valuations across the industry.
Market participants are closely watching the consumer products company as its shares display notable positive momentum during the current trading session. This upward movement reflects strong buying interest, marking a distinct positive shift for the equity today. Investors are tracking the equity closely to assess the sustainability of this ongoing advance.
Major technology equities are facing immediate downward pressure as market participants react to challenging trading conditions logged over the past month. The anticipated pullbacks for these prominent firms highlight the continuing volatility confronting institutional and retail investors alike. These downward trends signal potential shifts in broader market performance as the final quarter of the year progresses.