Domestic stake in NSE firms hits all-time high

Share of FPIs in NSE firms slumped 96 bps to 19.20% during the same period on the back of outflows to the tune of Rs 1.1 trillion during the quarter.

Domestic stake in NSE firms hits all-time high
Sensex and Nifty declined by 9.48% and 9.65%, respectively, during this period.

By Ashley Coutinho

The holding of domestic investors in companies listed on the NSE hit an all-time high for the quarter ended June, even as the share of foreign portfolio investors (FPIs) slumped to a 10-year low.

The share of domestic institutional investors, combined with that of individual investors, reached 23.53% as on June 30, 2022, 19 basis points higher than the previous quarter, as DIIs pumped in Rs 1.28 trillion during the quarter, data from primeinfobase.com show.

Share of FPIs in NSE firms slumped 96 bps to 19.20% during the same period on the back of outflows to the tune of Rs 1.1 trillion during the quarter.

FPI share for the quarter ended March 2015 was 23.3%, while the combined share of DIIs and individual investors was 18.47%.

“This further showcases the rise of domestic investors and the huge counter balancing role they have played to foreign investors in the Indian markets,” Pranav Haldea, MD, PRIME Database Group, said.

The value of FPI holdings slipped 12.3% to Rs 45.6 trillion as on June 30, 2022. FPIs pulled out Rs 69,476 crore from the financial services and information technology sectors during the quarter while investing Rs 5,087 crore in services & healthcare.

The share of domestic mutual funds in companies listed on the NSE rose for the fourth quarter running and reached a two-year high of 7.95% as on June 30, 2022, up 20 bps from the previous quarter. In value terms though, the holding of domestic MFs went down by 5.52% to Rs 18.88 trillion as on June 30, 2022, from Rs 19.99 trillion as on March 31, 2022.

Sensex and Nifty declined by 9.48% and 9.65%, respectively, during this period.

Share of insurance companies rose to 5.15% at the end of June, up from 5% as on March 31, 2022. The value of insurers’ holdings declined 5% to Rs 12.24 trillion during the quarter. LIC commands a 76% share of insurers’ equity investments.

The share of DIIs as a whole increased to 14.06% for the June quarter, a gain of 35 bps q-o-q. In value terms, DII holding was down 5.5% to Rs 33.4 trillion.

The share of retail investors — defined as individuals with up to Rs 2 lakh shareholding in a company — in NSE firms declined marginally to 7.4% in the June quarter. The value of retail holding reduced 8.2% to Rs 17.58 trillion.

The share of high net worth individuals in companies listed on the NSE declined to 2.08% as on June 30, 2022, from 2.21% in the previous quarter.

As such, the combined retail and HNI share slid 16 bps to 9.47% in Q1.

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