Retail pie in NSE cos at record

Retail investors pumped in ₹7,596 crore, with the shareholding increasing from 7.5% in the June quarter.

Simultaneously, Foreign Institutional Investor -Domestic Institutional Investor ownership ratio hit a historic low of 1.15, declining from an all-time high of 1.99 in the March quarter of 2015. “Retail participation in stock market has been increasing for some time, with SIP numbers and amounts reaching new highs. It is due to a number of factors, including increasing maturity of retail investors and ease of investing through digital platforms,” said Anand Vardarajan, business head, institutional clients, banking, alternate investments and product strategy, Tata Asset Management.

The report showed that the DIIs saw their holdings rise to 15.99%, surpassing ₹50 trillion in the quarter ended 30 September, and approaching the FII holding. FIIs’ share fell to 18.40%, down from 18.96%.

The gap between DII and FII shareholding reached an all-time low of 13.11% during the September quarter. DIIs, which include insurance companies, banks, mutual funds, etc., played a significant role in this trend, it added.

“Factors behind retail investors becoming dominant include strong and consistent performance of markets, stellar performance of SME (small and medium enterprises) and mainboard initial public offerings (IPOs), easier access to and understanding of stock markets, and increased disposable income with retail, among others.”

“Overall, it is seemingly easier to participate in the equity markets now than ever before, which seems to be contributing to this,” Puneet Maheshwari, director, Upstox, said.

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Updated: 11 Nov 2023, 12:01 AM IST