Mumbai, March 28 -- India's equity market is no longer dominated by foreign institutional investors as domestic funds have increasingly become active in the space, said Bhavesh Shah, managing director and head of investment banking at Equirus Capital.

Terming FII funds flowing into the country as "moody capital" and cyclical, Shah said the 7% gap between FIIs and domestic institutional investors in India's equity market had narrowed.

"Now it is neck and neck. So FIIs and DIIs own the same percentage in the companies in India," Shah said at the Mint India Investment Summit in Mumbai on Friday.

Retail investors, who have been increasingly investing in mutual funds, have also brought about a shift deepening India's equity market, Shah sai...