Retail investors – classified as individuals with less than shareholding worth ₹2 lakh in a company – made purchases worth ₹7,596 crore in July-September, according to Prime Database, amid the record-breaking run in the stock market
The country’s rich also mounted their bets on stocks here. The share of high-net-worth individuals’, or HNIs, holdings in NSE-listed companies rose to 2.05% as of September 30, 2023. The combined share of retail investor and HNI stakes reached an all-time high of 9.68%, said Prime Database.
Domestic Institutional Investors’ (DII) holdings declined marginally in the September quarter compared to the June quarter.
Retail participation in the stock market has spiralled since March 2020 – when Covid forced individuals to stay at home. Lockdowns enforced by the government, low interest rates then and strength in equities prompted individuals to buy stocks directly. Since March 2020, the total number of demat accounts has surged from 4.09 crore to 13.23 crore as on October 2023.
The share of promoters in companies declined to a four-year low of 41.55%. Pranav Haldea, MD of the Prime Database, attributes this to stake sales by promoters to take advantage of bullish markets, relatively lower promoter holding in companies that are getting listed, and higher institutional participation.
The value of DIIs’ holding crossed ₹50 lakh crore in the September quarter. The gap between FPI and DII holdings narrowed to an all-time low in the September quarter, indicating growing participation by local institutions including mutual funds and insurance companies. DII holding as against FPI holdings in Indian companies has shrunk to a record low of 13.11%.
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