The share of domestic institutional investors, along with retail and high net-worth individual investors, on the NSE reached yet another all-time high of 25.72 per cent as of March 31, 2023. The figure stood at 24.44 per cent in the sequential quarter ended December 2022, according to primeinfobase.com, an initiative of PRIME Database Group.
An analysis done by Pranav Haldea, Managing Director, PRIME Database Group said, “This was the sixth consecutive quarter where their combined share has increased, breaching the 25 per cent mark for the first time in the process, and showcases the steadfast march of the Indian Capital Market towards Atmanirbharta (self-sufficiency).”
Net inflows from DIIs stood at Rs 83,200 crore during the quarter, the data showed. On the other hand, net outflows by overseas investors in March quarter stood at Rs 26,211 crore. However, the share of foreign institutional investors increased by 32 basis points to 20.56 per cent as on March 31, 2023 from 20.24 per cent on December 31, 2022.
Haldea added that a structural shift in relation to foreign and domestic investors has taken place in the Indian market over the last 8 years. To put this in perspective, as on March 31, 2015, the FII share was 23.30 per cent while the combined share of DII, Retail and HNI was just 18.47 per cent.
The gap between FII and DII holding decreased to its lowest level ever in this quarter, with DII holding now just 20.46 per cent lower than FII holding (On December 31, 2022, DII holding was 24.30 per cent lower than FII holding). The widest gap between FII and DII holding was in the quarter ending March 31, 2015, when DII holding was 55.45 per cent lower than FII holding. The FII to DII ownership ratio also declined to an all-time low of 1.26 as on March 31, 2023 down from 1.32 as on December 31, 2022.
Meanwhile, the total share of institutional investors, including FII and DII, also reached an all-time high of 36.91 per cent in the quarter ending March 31, 2023, up from 35.56 per cent in the quarter ending December 31, 2022.
Share of domestic mutual funds (MFs) rose for the seventh quarter running and also reached yet another all-time high of 8.74 per cent as on March 31, 2023, up from 8.09 per cent as on December 31, 2022. “The share of domestic MFs during the quarter has increased on the back of net inflows by domestic MFs of Rs 54,942 crore. MFs increased their exposure to financial services and industrials sectors while trimming down their exposure to diversified and FMCG,” Haldea said in a media release.
Share of insurance companies as a whole also increased to a 6-year high of 5.87 per cent as on March 31, 2023 up from 5.65 per cent as on December 31, 2022. LIC continues to command the lion’s share of investments in equities by insurance companies (at least 68 per cent share or Rs 10.05 lakh crore).
LIC’s share (across 273 companies with more than 1 per cent holding) increased to 3.99 per cent as of March 31, 2023 from 3.95 per cent as of December 31, 2022.
“Insurance companies increased their exposure to energy and FMCG sectors while trimming down their exposure to diversified and consumer discretionary,” Haldea said.
The share of DIIs as a whole also increased to an all-time high of 16.35 per cent as on March 31, 2023 from 15.32 per cent as on December 31, 2022.
Share of retail investors (individuals with up to Rs 2 lakh shareholding in a company) also increased to an all-time high of 7.48 per cent as on March 31, 2023 from 7.23 as on December 31, 2022 while the share of high net worth individuals (HNIs) (individuals with more than Rs 2 lakh shareholding in a company) declined marginally to 1.88 per cent as on March 31, 2023 from 1.89 percent on December 31, 2022. As such, the combined retail and HNI share stood at 9.36 per cent as on March 31, 2023, up from 9.12 per cent as on December 31, 2022.
The share of the government (as promoter) in companies listed on the NSE declined to 7.75 per cent as on March 31, 2023, from 7.99 per cent as on December 31, 2022. Over a 13-year period (since June 2009), the share of the government has been steadily declining, from 22.48 per cent as on June 30, 2009, due to the Government’s divestment programme, not enough new listings as also lacklustre performance of many CPSEs relative to their private peers.
The share of private promoters in companies listed on the NSE decreased to a 3-year low of 41.97 per cent as on March 31, 2023 from 43.25 per cent on December 31, 2022.
There were 18 companies in which the trinity of promoters, FIIs and DIIs all increased their stake during the quarter, these being (in descending order by market capitalisation) Bajaj Holdings & Investment, Shriram Finance, Deepak Nitrite, Natco Pharma, NCC, Eclerx Services, Jindal Saw, Anant Raj, Hikal, Dhanuka Agritech, Jai Corp, PSP Projects, IOL Chemicals & Pharmaceuticals, Barbeque-Nation Hospitality, Cosmo First, RPG Life Sciences, Pix Transmissions and Linc.
Also read: Adani Enterprises Q4 results: Net profit rises 138% to Rs 722 cr; firm declares Rs 1.2 dividend
Also read: HDFC Q4 results: Profit jumps 20% to Rs 4,425 crore; Rs 44 dividend announced