Rs 8.5 lakh crore DII inflows dwarf FPI outflows in FY26: SEBI

SEBI's FY26 report showed domestic institutional investors invested a record Rs 8.5 lakh crore, offsetting FPI outflows of Rs 1.8 lakh crore. Strong mutual fund inflows, rising demat accounts and record capital raising underscored the resilience of India's capital markets

New Delhi: Domestic institutional investors (DIIs) emerged as a key pillar of India’s equity markets in FY26 recording net inflows of a record Rs 8.5 lakh crore and more than offsetting foreign portfolio investor (FPI) equity outflows of Rs 1.8 lakh crore, according to the latest annual report of the Securities and Exchange Board of India (SEBI).

The strong domestic participation helped push DII ownership in the NSE-listed universe to an all-time high of 17 per cent, while FPI ownership fell to a 15-year low of 15.8 per cent. In addition, mutual funds accounted for a large part of the domestic inflows, contributing about Rs 6.4 lakh crore, supported by steady systematic investment plan (SIP) flows and rising retail participation.

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The trend comes amid continued expansion in the investor base with the number of demat accounts rising to 22.5 crore during the year, reflecting broader participation aided by digital onboarding and easier market access.

SEBI’s report also highlighted the growing depth of India’s capital markets. Corporate India raised a record Rs 2.35 lakh crore through public equity offerings, including initial public offerings (IPOs), follow-on public offers (FPOs) and rights issues, an increase of 11.7 per cent over the previous fiscal.

Moreover, a record 257 companies tapped SME platforms during FY26 as mobilised Rs 11,587 crore, while capital raised through rights issues surged 134.2 per cent to Rs 46,168 crore. Funds mobilised through preferential allotments rose 76.3 per cent to Rs 1.48 lakh crore, while share buybacks jumped 143.6 per cent to Rs 19,238 crore with companies utilising nearly their entire offer sizes.

Additionally, the debt market also witnessed robust activity with resource mobilisation through public debt issues increasing 39.2 per cent to Rs 11,343 crore. These developments underscore the growing maturity and resilience of India’s capital markets with domestic savings increasingly cushioning the impact of global investment flows, according to SEBI.

The market watchdog also noted that stronger domestic participation, rising retail ownership and diversified fundraising avenues have contributed to a broader and more stable market ecosystem, even as foreign investors remained net sellers during the year.