This surge is fueled by the popularity of systematic investment plans (SIP) and increased access through digital platforms amid a strong bull market.
A substantial ₹7,596 crore was invested by retail players, pushing their share from 7.5% in the previous June quarter.
Simultaneously, the ownership ratio between FIIs and DIIs hit a historic low of 1.15, a significant drop from the peak of 1.99 in the March quarter of 2015.
Anand Vardarajan, business head at Tata Asset Management, highlighted the growing retail participation, pointing to rising numbers and amounts in SIPs.
He attributed this trend to factors such as increased maturity of retail investors and the seamless experience provided by digital platforms.
The report also disclosed a surge in DII holdings to 15.99%, breaching ₹50 trillion in the quarter ending on September 30. This brought them close to FII holdings, which fell to 18.40% from 18.96%.
The gap between DII and FII shareholding reached an all-time low of 13.11% in the September quarter, with entities like insurance companies, banks, and mutual funds playing crucial roles.
In summary, the equity market is undergoing a shift, with retail investors taking a prominent role in an environment where participation appears more accessible than ever before.