Capital Markets Landscape
A bird’s eye view of Indian Capital Markets
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In 2025, Indian equities delivered stable returns and marked the 10th consecutive year of positive performance, aided by strong macroeconomic fundamentals, sustained DII flows, proactive policy support, even as heightened global trade policy uncertainties capped the upside. That said, Indian equities have underperformed relative to global peers.
Movement in global equity indices during the last two years (June’2023 = 100)
Source: LSEG Datastream, NSE EPR
Note: Data for Shanghai Stock Exchange available till October 2025.
FPIs remained highly volatile through 2025 but, in aggregate, were net sellers of equities to the extent of US$ 18.9 bn. Individual investors recorded net outflows of US$ 0.6 bn, marking the first reversal after five consecutive years of net inflows. In contrast, equity markets continued to be supported by strong domestic institutional investment, with DII inflows of approximately US$ 90 bn.
Monthly Trends in equity fund flows across FPIs, DIIs and individual investors
Source: NSDL, LSEG Datastream and NSE EPR
Equity fund-raising stood at US$ 43.7 bn between April-December while the debt-fund raising has registered uptick crossing US$ 82 bn.
Trends in absolute fund mobilisation across equity, debt and REITs-InvITs in India
Source:SEBI, LSEG Datastream, NSE EPR
Mutual fund AAUM inched to US$911 bn in December 2025 with cumulative inflows of US$ 84 bn in FY26 so far (April-December), supported by record SIP flows. Equity AAUM is now over 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 has reached 216 million while the MF folios has set new record of 260 million as of December 2025.
Trends in number of demat accounts and MF folios
Source: CMIE Economic Outlook, NSE EPR
Source: MSCI Index Factsheet