In a revealing snapshot of market sentiment, Motilal Oswal has identified nine Nifty 50 stocks where Domestic Institutional Investors (DIIs) significantly increased their holdings in June 2025. This trend reflects a growing preference for stable, fundamentally strong companies amid global volatility and foreign investor pullbacks. The report highlights a strategic pivot by DIIs toward sectors like consumer goods, pharma, and infrastructure, signaling confidence in India’s domestic growth story.
Key Highlights from the Motilal Oswal Report
DIIs raised stakes in nine Nifty 50 stocks on a sequential basis in June 2025.
The increase comes amid a broader trend of foreign institutional investors (FIIs) trimming their exposure.
Sectors seeing the most DII interest include consumer durables, pharma, utilities, and financials.
The move aligns with DIIs’ growing influence, with their holdings in the Nifty 50 universe reaching record highs.
The Nine Stocks That Saw Significant DII Buying
Asian Paints
DII stake rose by 5.5% in June.
Despite underperformance earlier in the year, brokerages have upgraded the stock amid easing competition concerns.
The company is expected to benefit from a revival in discretionary spending and rural demand.
NTPC
DIIs increased their stake, betting on the utility major’s strong earnings visibility and renewable energy push.
The stock has remained resilient amid market volatility.
Trent
DII holdings rose by 1.3% to 18.5%.
The Tata Group retail arm has seen a correction from record highs, prompting value-based accumulation.
Shriram Finance
DIIs raised their stake by 1% to 16.3%.
The NBFC has seen foreign ownership dominate historically, but domestic investors are now warming up to its retail lending model.
Tata Steel
DII stake increased by 1.6% to 26.3%.
FIIs trimmed their holdings, while domestic investors bet on the company’s deleveraging and capex cycle.
Cipla
DIIs added 1.1% to their stake, taking it to 29.2%.
The pharma major is expected to benefit from strong US generics performance and domestic growth.
Dr. Reddy’s Laboratories
Stake rose by 1.1% to 26.7%.
The company’s pipeline and cost optimization strategies have attracted institutional interest.
Sun Pharma
DIIs increased their stake by 0.8%.
The company’s specialty portfolio and stable generics business continue to drive investor confidence.
Bajaj Auto
DII stake rose by 1.1% to 12.1%.
The stock has corrected from its highs, offering an attractive entry point amid robust export and EV plans.
Broader Market Context
Motilal Oswal’s report also notes that:
DII holdings in the Nifty 50 reached 23.6% in March 2025, an all-time high.
FIIs have reduced stakes in over 80% of Nifty 500 stocks, reflecting global risk aversion.
DIIs increased holdings in 42 Nifty 50 companies year-on-year, while FIIs reduced theirs in 38.
This shift underscores the growing dominance of domestic capital in Indian equity markets, especially as retail participation surges and mutual fund inflows remain strong.
Strategic Implications
The increased DII activity in these nine stocks suggests:
A preference for companies with strong domestic demand drivers and resilient earnings.
A tactical shift away from global cyclicals and toward consumer, pharma, and infrastructure plays.
Confidence in India’s macroeconomic stability and corporate governance reforms.
For investors, these trends offer a roadmap to align portfolios with institutional flows and sectoral momentum.
Sources: CNBC TV18
