New Delhi, Sept. 1 -- Despite the drag from elevated US tariffs, expensive valuations, sluggish earnings outlook, and persistent selling by foreign investors, domestic institutional investors (DIIs), largely comprising mutual funds, have maintained confidence in the economy's fundamentals.

Unfazed by these short-term challenges, they have poured record sums into equities through 2025, steadily accumulating Indian stocks at a strong pace, supported by growing retail investor participation.

DIIs bought equities worth Rs.5.13 lakh crore in the past eight months, as per the NSE data, achieving 97% of the full-year inflow of Rs.5.26 lakh crore recorded in 2024 and nearly tripling the Rs.1.81 lakh crore inflow seen in 2023. If this momentum c...