Indian households suffered a sharp erosion in equity wealth during the March 2026 quarter, but their steady investment through domestic institutions also helped prevent a deeper market fall. According to NSE’s latest Market Pulse, household equity wealth declined by nearly Rs 12.6 lakh crore during the quarter as global risk aversion, war-related pressure on oil prices and a weaker rupee weighed heavily on stock valuations.
The pressure was intensified by a major pullout by foreign portfolio investors. FPIs sold aggressively through FY26, with their ownership in NSE-listed companies slipping to around 15.8 per cent, the lowest in 17 years. Nearly three-fourths of the record annual outflows of about USD 19.6 billion came in the March quarter alone, pushing foreign ownership of Indian equities to its weakest level since the period before the 2008 financial crisis.
However, domestic investors emerged as the market’s main stabilising force. Domestic institutional investors, including mutual funds, insurers and banks, now own about 19.6 per cent of NSE-listed companies, staying ahead of FPIs for six straight quarters. Mutual funds alone hold a record 11.4 per cent share, supported by monthly SIP inflows of nearly Rs 29,000 crore to Rs 31,000 crore. While direct retail ownership fell to about 9.1 per cent, households’ total market exposure through direct holdings and mutual funds now stands at roughly 18.7 per cent, higher than FPIs, underlining how India’s market resilience is increasingly being funded by domestic savings.