In terms of ownership in firms listed on the National Stock Exchange (NSE), domestic institutional investors (DIIs) have surpassed foreign portfolio investors (FPIs) for the first time in more than 20 years, according to a new study released on Friday.

As more individuals turn away from more conventional investment alternatives like fixed deposits and real estate, this change demonstrates the growing interest of Indian investors in equities markets.

In the March quarter, DIIs owned 17.62% of NSE-listed businesses, an increase of 0.73 percentage points, according to statistics provided by Primeinfobase.com.

FPIs, however, suffered a 0.02 percentage point decrease, lowering their share to 17.22%.

Ten years ago, the total proportion of retail investors, DIIs, and high-net-worth individuals was less than the 20.71 percent owned by FPIs.

Domestic organisations including mutual funds, insurance providers, and pension funds have made significant stock market investments throughout the last five years.

According to A Balasubramanian, chief executive of Aditya Birla Sun Life Mutual Fund, “More people are now choosing mutual funds, the National Pension System, insurance, and direct equities… this has led to an increase in DIIs’ ownership of equities.”

This is a momentous occasion for Indian financial markets, according to Pranav Haldea, Managing Director of Prime Database Group.

He identified a significant contributing element as the consistent influx of individual investors using Systematic Investment Plans (SIPs).

The percentage of DIIs in the equities market has increased dramatically as a result of this change in investing habits, and analysts predict that this trend will continue.

In the meanwhile, amid global uncertainty, the Indian stock market performed well in April.

The surge in banking and financial companies was a major factor in the Sensex’s 3.65% monthly increase and the Nifty’s 3.46% monthly increase.

Leading the charge were banking equities; in April, the Nifty Bank index gained 6.83 percent.

With returns of more than 4%, other important industries like real estate, FMCG, financial services, PSU banks, and auto also had robust increases.