Domestic Capital Index.
The depth of India's own capital pool: institutional flows, SIPs, and the financialisation of household savings.
The headline index
Why India's market held while foreigners fled: domestic money surged. MF AUM +₹14 lakh cr to ₹81 lakh cr, SIPs at ₹29,445 cr/mo, households now putting ₹45 of every ₹100 of savings into equity. The index reads 108: the home base deepening 4% YoY.
The 5 depth gauges
Latest reads anchor to official 2025 releases (cited per depth gauge).
Net buying by domestic institutions: the standing bid that offset record foreign selling. Higher = stronger.
Source ↗ NSE / Mata Securities, Sept 2026Monthly systematic-investment-plan inflow: the sticky, automated retail bid that rarely flinches. Higher = stronger.
Source ↗ AMFI, Aug 2026Of every ₹100 of household savings, how much goes to MFs/equity rather than bank deposits. Higher = deeper financialisation.
Source ↗ RBI / Business Standard, 2025The mutual-fund asset base: the reservoir of domestic capital available to deploy. Higher = deeper pool.
Source ↗ AMFI, Aug 2026Demat-account count: the breadth of direct retail participation, the new-investor on-ramp. Higher = wider base.
Source ↗ NSDL / CDSL, May 2026Smoothed, rebased, winsorised, weighted.
How it's built
Institutional flow, SIP run-rate, the household savings shift, the AUM reservoir, and participation breadth: the supply of home-grown capital.
Every pillar points up for strength. A rising DCI means a deeper domestic bid: the buffer against foreign flightiness.
3-month average, rebase to mid-2024, clamp to [50,180]. One bumper SIP month or AUM mark-up can't overstate the trend.
External Vulnerability asks who is leaving; Domestic Capital answers who is arriving. The net is what actually moves prices.
SIPs and the savings shift are structural, not tactical: the index weights them to capture durable financialisation, not a momentum blip.
- · AUM ≠ flow: asset growth blends fresh money with mark-to-market; the flow pillars (DII, SIP) isolate genuine new capital.
- · Reflexivity: rising markets lift both AUM and confidence; the index leans on flow, not level, to avoid a feedback illusion.
- · Concentration within: retail can crowd the same few large-caps; read against the Gravity Index for breadth.
- · Reversibility: a structural shift can still pause in a drawdown; the desk note flags any SIP-flow rollover early.
Data vintage August 2026. Latest reads anchor to AMFI / Business Standard (SIP, AUM), RBI (household savings mix), and NSE / NSDL-CDSL (DII flows, demat). Monthly path reconstructed; reconciles to the cited sources. AUM blends flow with mark-to-market: the flow pillars isolate genuine new capital.
Methodology v3.2 (2026-07). Built to the OECD/JRC composite-indicator handbook and disclosed toward the IOSCO Principles for Financial Benchmarks: distance-to-reference normalisation, 3-month smoothing, a flagged contribution cap, weighted aggregation, plus a drop-one-pillar uncertainty band, an equal-weight robustness cross-check, and a data-coverage ratio (all shown above). Known limitation: the 24-month panel is too short for robust seasonal adjustment; India's March fiscal-year-end spikes are not yet removed. Series are point-in-time; published values are not silently restated.
The home bid, monthly.
The Domestic Capital Index tracks DII flows, SIPs, and household financialisation every month.