Capital Markets Landscape
A bird’s eye view of Indian Capital Markets
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Indian equity markets have delivered double-digit growth in both INR and USD terms over the last two years.
Movement in global equity indices during the last two years (June’2023 = 100)
Source: LSEG Refinitiv, NSE EPR
Renewed uncertainty over trade negotiations, weaker-than-expected Q1 corporate earnings and weakening in the INR turned the FPIs into net sellers in July with outflows amounting to US$2.1 bn. DII remained consistent buyers stabilizing the markets, with US$7.1 bn of inflows. Individual investors turned buyers for the first time since March 2025.
Monthly Trends in equity fund flows across FPIs, DIIs and individual investors
Source: NSDL, LSEG Datastream and NSE EPR
Debt fund-raising remains healthy in the first quarter of FY26 while equity fund-raising has seen some resurgence in recent months.
Fund mobilisation across equity, debt and REITs-InvITs in India
Source:SEBI, LSEG Datastream, NSE EPR
Mutual fund AAUM continue to scale record high level of US$ 875 bn in July 2025 and inflows of US$ 62 bn in the first four months of FY26, aided by record SIP inflows. Equity AAUM is now ~10% of overall Indian equity market.
Trends in net fund flows and average assets under management of mutual funds
Source: AMFI, CMIE Economic Outlook, LSEGH Datastream, NSE EPR
Total demat accounts in India have crossed the 200 mn mark with the MF folios close to the 250 mn as of July’2025.
Trends in number of demat accounts and MF folios
Source: CMIE Economic Outlook, NSE EPR
Source: MSCI Index Factsheet