Domestic investors' — individual and institution — ownership in listed companies on the National Stock Exchange (NSE) declined for the first time in seven quarters amid a rise in investments by overseas funds, a report by Business Standard stated. During the June quarter of the 2023-24 financial year (Q1FY24), it stood at 25.50 percent, down 25.73 percent from Q1FY23, it informed, citing a report by PRIME Database.
“The decline in domestic ownership was due to profit booking by LIC, mutual funds (MFs), retail and wealthy investors, with markets reaching all-time highs. Net inflows from domestic institutional investors (DIIs) stood at just Rs. 3,368 crore during the quarter," Pranav Haldea, managing director of PRIME Database, was quoted as saying.
Meanwhile, the foreign portfolio investor (FPI) share rose to 18.94 percent in Q1FY24, from 18.87 percent in Q4FY23, noted the report. The rise in FPI ownership is due to substantial net inflows to the tune of ₹1.02 lakh crore during Q1FY24, it added.
The share of domestic MFs declined to 8.64 percent in Q1FY24 after increasing for seven consecutive three-month periods. The net inflows by domestic MFs stood at a modest ₹2,979 crore during the quarter, it mentioned.
Meanwhile, insurance companies’ shares also declined to 5.67 percent in Q1FY24, down from 5.87 percent in Q4FY23. LIC continues to command the lion's share of investments in equities by insurance companies, with a share of 68 percent or ₹11.16 lakh crore, said the report.
Overall, the share of DIIs decreased to 16.07 percent in Q1FY24, from 16.36 percent in Q4FY23 after increasing for six quarters, highlighted BS.
Additionally, the gap between FPI and DII holdings widened in this quarter with DII holding now being 15.19 percent lower than FII holding, it said.
Meanwhile, the share of retail investors remained constant, at 7.49 percent, in Q1FY24. At the same time, high net worth individuals’ share (HNI) rose to 1.94 percent from 1.8 percent. Retail investors' shares remained unchanged despite being net sellers worth Rs. 25,497 crore, informed the market daily.
The combined retail and HNI share stood at 9.43 percent in Q1FY24, up from 9.37 percent in Q4FY23, it added.
