Domestic players continued to buy into the Indian stock market, widening their gap in ownership over foreign portfolio investors (FPIs), a report by Business Standard stated. As per the report, DIIs collectively held 23.5 percent of companies listed on the National Stock Exchange (NSE) as of the June quarter for the 2022-23 financial year (Q1FY23), while FPI holdings dipped to a 10-year low of 19.2 percent share.
The analysis is for 1,770 companies for which shareholding data is available; out of 1,808 companies listed on the NSE, informed BS.
DIIs collectively raised their holdings to 14.1 percent from 13.7 percent earlier, noted BS, while retail investors saw a marginal decline in ownership to 7.40 percent from 7.42 percent in the previous quarter (Q4FY22). High net-worth individuals (HNIs) also trimmed their investments as their stake fell to 2.08 percent, from 2.21 percent, in the previous quarter, it added.
BS further pointed out that mutual funds’ share rose to a two-year high of 7.95 percent in Q1FY23 from 7.75 percent in Q4FY22 with inflows to the tune of ₹73,857 crore during the June quarter. The share of insurance companies also rose to 5.15 percent from 5 percent earlier, it said.
"The Life Insurance Corporation of India (LIC) accounted for more than three-fourths of the total stake that the insurance segment holds in Indian equities. Its ownership across 286 companies, for which data is available as part of shareholding disclosures, was 3.92 percent. The stake for LIC has now risen for two quarters in a row," informed the report.
Meanwhile, private promoters’ holdings declined to 44.33 percent in the June quarter, compared to 45.12 percent in the previous one. They held ₹105 lakh crore worth of stocks compared to ₹17 lakh crore government promoter holdings, highlighted BS.
It is important to note that even as domestic inflows have continued, foreign investors turned net buyers to the tune of ₹4,989 crore in July, after selling ₹50,203 crore worth of equities in June.