Holding of retail investors (individuals with up to Rs2 lakh shareholding) in companies listed on NSE reached an all time high of 7.18% as on 30 June 2021, from 6.96% as on 31 March 2021, as per primeinfobase.com, an initiative of PRIME Database Group.
In Rs value terms too, retail holding in companies listed on NSE reached an all-time high of Rs16.18 lakh crore from Rs13.94 lakh crore on 31 March 2021, an increase of 16% (Sensex and Nifty rose by 6.01% and 7.02% respectively during this period).
According to Pranav Haldea, Managing Director, PRIME Database Group, a buoyant secondary market and a flurry of new listings have helped in channelising retail savings into the capital market.
Holding of High Net Worth Individuals (HNIs) (individuals with more than Rs2 lakh shareholding), in companies listed on NSE also increased to 2.10% as on 30 June 2021 from 1.98% on 31 March 2021, taking the combined retail and HNI holding to an all time high of 9.28%.
Holding of domestic Mutual Funds in companies listed on NSE, however, reduced marginally to 7.25% as on 30 June 2021 from 7.26% as on 31 March 2021. According to Haldea, holding of Mutual Funds has now declined for five consecutive quarters, after 24 quarters of continuous rise (from 2.80% as on 31 March 2014 to 7.96% as on 31 March 2020). The holding has fallen despite net inflows by domestic Mutual Funds of INR 12,069 crore during the quarter. In Rs value terms though, the holding of domestic Mutual Funds went up by 12.30% to an all time high of Rs16.33 lakh crores as on 30 June 2021 from Rs14.54 lakh crores on 31 March 2021.
According to Haldea, these trends also show the willingness and preference of individual investors to invest directly, rather than indirectly via Mutual Funds.
LIC's holding (across 295 companies where its holding is more than 1%) declined to 3.74% as on 30 June 2021, down from 3.83% as on 31 March 2021 and from all-time high of 5% as on 30 June 2012. In Rs value terms though, it reached an all-time high of Rs8.43 lakh crore in quarter ending 30 June 2021, an increase of 9.88% over previous quarter. LIC also continues to command a lion's share of investments in equities by insurance companies (76% share).
Holding of Foreign Portfolio Investors (FPIs) also declined to 21.66% as on 30 June 2021, from 22.46% as on 31 March 2021. Net inflows from FPIs stood at Rs 4601.53 crore during the quarter. In Rs value terms, FPI ownership also reached an all-time high of Rs48.82 lakh crore as on 30 June 2021, up 8.46% from Rs45.01 lakh crore as on 31 March 2021.
The percentage holding of private promoters in companies listed on NSE increased to 44.42% as on 30 June 2021 from 44.09% on 31 March 2021. Over a 12-year period (since June 2009), private promoter ownership has been steadily increasing, having increased from 33.60% on June 30, 2009. In Rs value terms, private promoter holding in companies listed on NSE has gone up over 7 times to Rs100.12 lakh crore from just Rs 14.51 lakh crore on June 30, 2009, of course, aided by new listings too. While ï¿½Indian' private promoters holding has gone up from 26.44% to 35.89% over the last 12 years, ï¿½foreign' promoters' holding has gone up from 7.17% to 8.52%.
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