Domestic market ownership increased for the fifth consecutive quarter to 24.44% in December

retail investorThe market share stood at 7.23 per cent in December 2022, marginally lower than 7.34 per cent in September 2022. 19.94 lakh crore to Rs. 19.48 lakh crore in the previous quarter, registering a growth of 2.35 per cent.

The shareholding stood at 24.25 per cent in September 2022, according to data collated by market information major Prime Database, based on the shareholding pattern of 1,832 out of total 1,857 companies on the NSE for the quarter till December 2022.

According to Prime Database Group Managing Director Pranav Haldia, this was the fifth consecutive quarter of growth from 22.37 per cent in September quarter 2021 and reflects the growing dominance of domestic investors.

Net inflow from domestic institutional investors stood on (DIIs) 27,134 crore against net inflows from Foreign Institutional Investors (FIIs) during the quarter. 47,349 crore, resulting in their share increasing marginally to 20.18 per cent in December 2022, from 19.98 per cent in September 2022, down massively from 23.30 per cent in March 2015, when the combined share of DIIs, retail and HNIs stood at only 18.47 per cent.

The biggest difference between FII and DII holding was in the March 2015 quarter, when DII holding was 55.45 per cent less than FII holding.

The FII to DII ownership ratio has also come down to an all-time low of 1.32 in December 2022 from 1.33 in September 2022.

Over a period of 13 years, since June 2009, the share of FIIs has increased from 16.02 per cent to 20.18 per cent, while that of DIIs has increased from 11.38 per cent to 15.32 per cent.

On the other hand, the share of total institutional investors (FIIs and DIIs) increased to 35.50 per cent in December 2022 from 34.99 per cent in September 2022.

The share of domestic mutual funds increased in the sixth quarter and reached an all-time high of 8.09 per cent in December 2022 from 7.97 per cent in September 2022. This was after 5 consecutive quarters of decline since March 2020 when it stood at 7.96. per cent to June 2021 when it was 7.25 per cent.

The share of insurance companies as a whole also increased from 5.57 per cent in September 2022 to a 5-year high of 5.65 per cent in December 2022. at least 70 percent of the shares or 10.91 lakh crores. LIC’s stake in 268 companies where it is more than 1 percent increased to 3.95 percent in December 2022 from 3.87 percent in September 2022.

Overall DII share increased from 15.01 per cent in September 2022 to an all-time high of 15.32 per cent in December 2022. 42.28 lakh crore, a sequential increase of 6.07 per cent.

On the other hand the share of retail ownership (those who invest less than 2 lakh) marginally reduced to 7.23 per cent in December 2022 from 7.34 per cent in September 2022. But in rupee terms, it has increased 19.94 lakh crore in the period under review 19.48 lakh crore in the last quarter.

Share of HNIs (who have 2 lakh shareholding) also reduced from 1.90 per cent in September 2022 to 1.89 per cent in December 2022. Thus, the combined retail and HNI share stood at 9.12 per cent in December 2022 as against 9.24 per cent in September 2022.

FII holding in rupee terms 55.70 lakh crore in December 2022, an increase of 4.98 percent 53.06 lakh crore in September 2022. This is despite the fact that they pulled 3,162 crore from the consumer durables and oil, gas and consumable fuel sectors during the quarter while investing in 19,391 crore in financial services and FMCG.

According to Haldia, FIIs are the largest non-promoter shareholders in the domestic market. The top 10 companies in terms of market capitalization account for 90.62 per cent of the total FII holding.

Government stake (as promoter) in NSE companies also rose to a 4-year high of 7.99 per cent in December 2022 from 6.87 per cent in September 2022, boosted by better performance of public sector banks.

The text of this story is published from a wire agency feed without any modification.