investors: Local investors’ share in listed companies falls with profit-booking

Mumbai: Equity ownership of domestic investors, including institutions, retail and high-net-worth individuals, in companies listed on the NSE declined for the first time in the past seven quarters. This is because of selling by mutual funds, retail investors and LIC with the stock market reaching all-time highs.

Domestic investors’ shares in NSE listed companies declined to 25.50% of total equity value on June 30, after increasing for six quarters in a row, showed data from primeinfobase.com. The market capitalisation of NSE-listed companies was ₹294 lakh crore as on June 30, 2023. As on March 31, they held 25.73%, rising from 22.40% on September 30, 2021. Meanwhile, foreign portfolio investors’ share increased in the fourth quarter to 18.94% as on June 30, up seven basis points (0.07%) from the March quarter.

Domestic institutional investors (DIIs) bought shares worth ₹3,368 crore during the June 2023 quarter, compared to FPIs inflows of ₹1,02,617 crore.

While the benchmark Nifty rallied 10% in the June quarter, Nifty Midcap150 and Nifty Smallcap 250 indices surged 17% and 19%, respectively.

Local Investors’ Share in Listed Cos Falls with Profit-booking

The gap between FPI and DII holdings also widened in the June quarter, with DII holding now being 15.19% lower than FPI holdings.The share of domestic mutual funds in NSE-listed companies declined to 8.64% as of June 30, after increasing for seven consecutive quarters, from 7.24% on June 30, 2021, to 8.74% on March 31, 2023. LIC’s share also decreased to 3.85% on June 30, 2023, from 3.99% on March 31, 2023.

The share of retail investors’ direct investments into the market remained the same at 7.49% on June 30, from the previous quarter, while the share of HNIs increased to 1.94% on June 30, 2023, from 1.88% on March 31.

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