In 2025, Indian stock markets experienced significant foreign investor outflows, totaling approximately ₹1.54 lakh crore, attributed to slowing growth, currency depreciation, and valuation concerns. Conversely, domestic institutions, bolstered by substantial retail investor inflows into mutual funds, invested around ₹7.7 lakh crore. This trend led to domestic ownership surpassing foreign ownership of Indian companies. Despite these domestic inflows, Indian stocks underperformed other Asian markets, though they achieved modest gains.