The Indian equity markets were not as badly damaged as they were previously when foreign investors withdrew their funds from the equities. This is due to the significant contributions of retail investors, domestic mutual funds, and insurance firms.
According to the Association of Mutual Funds in India (AMFI), the number of systematic investment plan (SIP) accounts stood at an all-time high of 5.54 crore as of June 30, 2022. The SIP assets under management (AUM) at the end of June 2022 stood at ₹5.51 lakh crore, while new SIPs registered during June 2022 stood at 17.92 lakh.
According to the report, the net AUM for the mutual fund industry stood at ₹35.64 lakh crore as of June 30, 2022, a 6 per cent growth year-on-year (y-o-y), while average AUMs grew 8 per cent on a yearly basis to ₹36.98 lakh crore.
Further, the number of mutual fund folios rose by a massive 31 per cent on a yearly basis to an all-time high of 13.46 crore as of June 30, 2022, compared to 10.25 crore as of June 30, 2021. On a monthly basis, it increased by 1% from 13.33 crore on May 31, 2022.
In addition, the total De-mat count now stands at 96.5 million, with 16 million new accounts added during the first half of 2022 — higher than the 12.4 million added in the first half of 2021, Business Standard reported.
Here are some of the top 10 Nifty50 stocks with high retail holdings.
|Scrip Name||Retail holding (%)|
|Larsen & Toubro Ltd||44.1|
|Dr. Reddy's Laboratories Ltd.||22.0|
Retail investors held 44.1% of the stake in Larsen & Toubro Ltd in the June-ending quarter, an increase of 0.2% from March 2022. The stake in Infosys stands at 36%, and for JSW Steel and Grasim, it was 36 and 30.2. Retail investors own 25% and 24.6 per cent of Tata Group stocks in Tata Steel and Tata Motors respectively.
Besides, the share of domestic institutional investors, combined with that of individual investors, reached 23.53% as of June 30, 2022, 19 basis points higher than the previous quarter, as DIIs pumped in ₹1.28 trillion during the quarter, Financial Express reported, quoting Primeinfobase data.
Share of FPIs in NSE firms slumped 96 bps to 19.20% during the same period on the back of outflows to the tune of ₹1.1 trillion during the quarter.
The FPI share for the quarter ended March 2015 was 23.3%, while the combined share of DIIs and individual investors was 18.47%.
The share of domestic mutual funds in companies listed on the NSE rose for the fourth quarter running and reached a two-year high of 7.95% as on June 30, 2022, up 20 bps from the previous quarter. In value terms, though, the holdings of domestic MFs went down by 5.52% to ₹18.88 trillion as of June 30, 2022, from ₹19.99 trillion as on March 31, 2022.
The Share of insurance companies rose to 5.15% at the end of June, up from 5% as on March 31, 2022. The value of insurers’ holdings declined 5% to ₹12.24 trillion during the quarter. LIC commands a 76% share of insurers’ equity investments.
The share of DIIs as a whole increased to 14.06% for the June quarter, a gain of 35 bps q-o-q. In value terms, DII holding was down 5.5% to ₹33.4 trillion.
Further, the share of retail investors — defined as individuals with up to ₹2 lakh of shareholding in a company — in NSE firms declined marginally to 7.4% in the June quarter. The value of retail holdings decreased 8.2% to ₹17.58 trillion.
The share of high net worth individuals in companies listed on the NSE declined to 2.08% as on June 30, 2022, from 2.21% in the previous quarter. As such, the combined retail and HNI share slid 16 bps to 9.47% in Q1, the report said.
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