A Big Shift in Ownership
Recent market data shows a clear change in who holds more shares in the stock market. At present, foreign investors hold around sixteen and a half percent of the market. (see the image below)
On the other side, domestic institutions now hold close to nineteen and a half percent. This is a strong move when compared to the past. It shows that local investors are playing a much bigger role than before.
How Things Looked in the Past
If we look back about ten years, domestic institutions usually held only around eleven to twelve percent of the market. At the same time, foreign investors were in the twenty to twenty-one percent range. For many years, this pattern stayed mostly the same. Foreign money was the main driver, while domestic money had a smaller share.
The Trend Changed After 2021
After 2021, this pattern changed in a big way. Foreign investors slowly dropped from around twenty-one percent to about sixteen percent. Meanwhile, domestic institutions moved up from near fifteen percent to almost nineteen and a half percent. This shows strong growth in local participation and confidence in the market.
Strong Support from Inside the Country
Because of this rise in domestic ownership, the market now has solid support from within the country. This is a positive sign. When local investors stay invested, markets become more stable. It also shows that people at home trust the long-term future of equities.
A Possible Double Boost for Markets
If foreign investors start increasing their share again in the future, the market could get a double boost. Domestic money is already flowing strongly. Adding foreign money on top of that can create a powerful upward move. This kind of setup can lead to a fresh bull market phase.
Why This Looks Possible
Domestic equity flows are hard to stop now. Regular investments through SIPs and steady inflows continue every month. If the dollar weakens or more money starts coming into emerging market funds, foreign investors may return in bigger numbers. If that happens, the market could enter a new and strong growth cycle.
