The ownership of promoters in NSE-listed companies rose for the fifth consecutive quarter to a seven-quarter high of 51.5% in the April-June period, according to the NSE’s India Inc Ownership Tracker report. This marks a sequential increase of 14 basis points (bps), translating to an 80-bps rise in the first half of 2024.

The increase was driven by a rise in government and foreign promoter share, which was partly offset by a decline in private Indian promoter ownership for the fourth consecutive quarter.

The foreign promoter ownership in NSE-listed companies rose 28 bps on quarter to 8.3% in the June quarter while that of private Indian promoters fell by 33 bps to an 18-quarter low of 32.4%. The decline in the private Indian promoter ownership was due to a drop in non-individual private promoter shares, despite a rise in individual promoters’ shares, including HUFs, which increased to 6.5%.

Similarly, promoter holding in the Nifty 500 rose for the fifth consecutive quarter to 50.9%. However, ownership in Nifty 50 companies dropped by 54 bps sequentially to 42.3% in Q1FY25, marking the first drop in six quarters.

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Shareholding of foreign portfolio investors (FPIs) in NSE-listed companies fell by 28 basis points sequentially to a 12-year low of 17.6%. This is the fifth drop in a row, corroborating with strong foreign capital outflows in the first two months of the quarter.

FPI ownership in Nifty 500 also declined, falling 24 bps quarter-on-quarter to 18.7% while the same in Nifty 50 inched up 15 bps sequentially to 24.5%.

The shareholding of domestic mutual funds in NSE-listed companies rose 25 bps sequentially to a record high of 9.2%, thanks to sustained systematic investment plan (SIP) inflows.

SIP inflows have risen steadily in the last few years, with the average monthly run rate rising by 9.1% QoQ to Rs 20,846 crore in the quarter under review. The share of domestic mutual funds rose to a fresh all-time high of 11.1% and 9.6% sequentially in Nifty 50 and Nifty 500, respectively.

Individual investors’ share of the entire NSE-listed universe inched up 10 bps sequentially to 9.6% while that of the government rose 27 bps to a 30-quarter high of 11.5%.