Daijiworld Media Network - New Delhi

New Delhi, Dec 4: Domestic institutional investors have injected a massive $81.3 billion into Indian equities so far in 2025 — already surpassing their full-year inflows for 2024 — even as foreign institutional investors pulled out $16.2 billion, according to a new report by Motilal Oswal Financial Services Ltd. (MOFSL).

The brokerage noted that companies under its coverage posted 12 per cent year-on-year earnings growth in Q2 FY26, while Nifty earnings rose just 2 per cent, extending a six-quarter streak of single-digit PAT growth. Mid- and small-cap indices continued to outpace larger peers, with Nifty Midcap-150 profits up 27 per cent and Nifty Smallcap-250 up 37 per cent from a year earlier.

Domestic investors recorded strong inflows of $8.7 billion in November, marking their 28th straight month of net buying, while foreign flows remained largely unchanged for the month. Roughly 60 per cent of Nifty stocks closed higher, with technology, PSU banks and healthcare among the strongest monthly performers. Over the year so far, PSBs, auto and metal stocks have led sectoral gains.

Despite headwinds from US tariffs on Indian manufacturing, domestic demand has remained resilient. MOFSL said the GST-driven bump in consumption during Q2 and increased government expenditure in Q3 are likely to offset weakness in exports.

India’s forex reserves stayed elevated at $688 billion, while the rupee traded around Rs 89.5 per US dollar. Cash market turnover rose 6 per cent month-on-month, and F&O volumes reached their second-highest level of the calendar year.

Although the Nifty touched a fresh all-time high in November 2025, India’s overall market capitalisation, at $5.3 trillion, remains slightly below its September 2024 peak. The country’s share in global market capitalisation slipped to 3.6 per cent from the 4.7 per cent peak last year amid stronger performance in overseas markets.