Due to the huge fall in the Indian stock market, the equity assets of the country’s investors decreased by about Rs 12.6 lakh crore in the March quarter. This information has come to light in the latest Market Plus report of the National Stock Exchange (NSE). According to the report, this has been one of the most volatile quarters of the Indian stock market in recent years. In the fourth quarter, Nifty 50 recorded a decline of more than 10 percent.
Why did the stock market crash?
The biggest reasons for the decline in the market were increasing geopolitical tensions, concerns over the Iran conflict, rising crude oil prices and continuous selling by foreign investors. Apart from this, the trend of global investors increased towards AI and semiconductor sector, due to which money started moving from emerging markets like India to countries like Taiwan and South Korea.
Domestic equity reached Rs 76.5 lakh crore
The report said that by March 2026, the total stake of domestic investors in NSE-listed companies, which includes both direct share investments and mutual fund investments, will decline to Rs 76.5 lakh crore. This is a decline of about 13 percent on a quarterly basis.
A total decline of Rs 2.5 lakh crore was recorded during FY26, but the March quarter alone saw a huge decline of Rs 12.6 lakh crore. However, from April 2020 till now, there is still an increase of about Rs 44 lakh crore in the total equity assets of domestic investors.
Foreign investors withdrew huge money
According to the report, during FY26, foreign portfolio investors (FPIs) withdrew $19.6 billion from the Indian market. This also affected his share. FPI stake in NSE listed companies dropped to 17-year low of 15.8 percent. At the same time, his stake in Nifty 50 also decreased to 21.8 percent.
Investment in mutual funds becomes strong
Despite the falling market, domestic mutual fund investment remained strong. Due to continued investment through SIP, the share of mutual funds increased to a record 11.4 percent. This is the 11th consecutive quarter when the share of mutual funds remained at a record level.
Investors are moving away from buying shares directly
The report also revealed that the share of individual investors buying shares themselves declined for the second consecutive quarter to a five-year low of 9.1 percent. However, experts say that this does not mean that small investors are leaving the market. Now people are preferring to invest through mutual funds and SIP instead of buying shares directly. According to the report, the thinking of Indian investors is now gradually moving towards long-term and systematic investment.
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