Explainer: Who dictates the stock market? Promoter, FPI, Mutual Fund, or Retail… Who is more powerful now? The revelation has been made.

News Topical, Digital Desk : When you invest in the stock market, a question inevitably comes to mind: Who controls the companies? Who is investing the money? Who is buying and who is selling? The latest India Ownership Report for September 2025 provides clear answers to all these questions. The report reveals which categories—promoters, foreign investors (FPIs), domestic mutual funds (DMFs), or retail investors—are most influencing India's stock market.

The most interesting thing is that for the first time, retail investors (directly and mutual funds) together hold a larger stake than FPIs.

Meanwhile, FPI holdings have fallen to a 15-year low. On the other hand, SIP funds continue to be a strong force in the market. Promoters' shareholdings are also stable, while the government's shareholding has declined slightly. Let 's try to understand this report in simple terms for ordinary investors.  (1) Promoters' shareholding remains the biggest force - (Data shows 50.1%). In India, promoters, the owners of companies, hold the largest shareholding, a total of 50.1%. This share has remained relatively stable for the past few quarters. Meaning for the ordinary investor: If promoters' shareholding is stable, it shows confidence in the company. If promoters sell shares, the market often considers it negative. However, a stable promoter shareholding is a positive sign for the market. 

Indian vs Foreign Promoters i.e. Domestic Vs Foreign Investors Indian promoters – 32.2% Foreign promoters – Increased to 8.4% (9-quarter high) The increase in Foreign Promoters shows that the confidence of foreign strategic investors in Indian companies is increasing. 

(2) Government's share decreased slightly (10%) The government's share is 10% and it has been decreasing for the last few quarters. The reasons for this are: - OFS in many PSU companies - Preparation for disinvestment - Increase in private promoter share Now if a common investor had understood this… Experts say that the PSU Bank Index has performed well, but the government's share has decreased slightly. This means that investors are trusting PSU stocks, but the government's control is gradually decreasing. 

(3) FPI share is 15-year low (16.9%), the biggest alarm! The biggest and negative point of the report is that the share of foreign investors has come down to 16.9%, which is the lowest in 15 years. 

Why is FPI holding decreasing? - Uncertainty in foreign markets - Dollar inflation - High valuations in India - US-China trade tensions - Uncertainty in Fed policy - What does this mean for retail investors? - FPI selling causes market decline. - But this time the situation is different. DMFs and retail have compensated for the FPI shortfall. Therefore, instead of falling, the market has remained stable. 

(4) Domestic Mutual Funds (DMFs) – The biggest hero! (Holding: 10.9% – Highest level in history) - This report clearly shows that the real engine of India's stock market today is Domestic Mutual Funds. - DMF holding 10.9% – New record - This is the 9th consecutive quarter when DMFs have set a new record 

Why is the strength of DMFs increasing? - Consistently record money in SIPs - Average SIP inflow of ₹28,697 crore every month - DMF net inflow has been positive for 18 consecutive quarters

Read More: Ruchira Papers Q2 Results: Profit falls to ₹16 crore, margins fall but stock rises