Domestic Investors Drive Record Inflows in India FY26

The Securities and Exchange Board of India reported that domestic institutional investors recorded record net inflows of Rs 8.5 lakh crore during the 2026 fiscal year. These inflows more than offset Rs 1.8 lakh crore in outflows from foreign portfolio investors, shifting the ownership landscape of the NSE-listed universe. Domestic institutional ownership reached an all-time high of 17 per cent, while foreign portfolio investor ownership fell to a 15-year low of 15.8 per cent.

Mutual funds were a primary driver of this trend, contributing approximately Rs 6.4 lakh crore to the total inflows. The report also highlighted a surge in corporate fundraising, with public equity offerings reaching a record Rs 2.35 lakh crore, an 11.7 per cent increase over the previous fiscal year. Other significant growth areas included a 134.2 per cent increase in capital raised through rights issues and a 143.6 per cent jump in share buybacks.

Market participation expanded as the number of demat accounts rose to 22.5 crore. The regulator attributed this growth to digital onboarding processes and improved market access for individual investors.