Domestic investor share in NSE firms hits all-time high

Domestic investor share in NSE firms hits all-time high

The share of foreign portfolio investors (FPIs) declined further to a 10-year low of 19.03% as on September 30, down 17 bps from 19.2% as on June 30. This is despite net inflows of Rs 48,570 crore during the quarter from these investors.

As on March 31, 2015, FPI share was 23.3% while the combined share of DII, retail and HNI was 18.47%.

Sensex and Nifty rose 8.31% and 8.33% respectively during the September quarter.

Over a 13-year period (since June 2009), FPI share has increased from 16.02% to 19.03%, while DII share has increased from 11.38% to 14.79%.

FPI holding in value terms in companies listed on the NSE stood at Rs 50.52 trillion as on September 30, an increase of 10.73% from Rs 45.62 trillion as on June 30. FPIs pulled out Rs 21,878 crore from information technology, oil & gas and consumable fuels sectors during the quarter, while investing Rs 22,689 crore in financial services and healthcare.

The share of domestic mutual funds in companies listed on the NSE rose for the fifth quarter running and reached an all-time high of 7.97% as on September 30, up from 7.95% as on June 30. This was after five quarters of consecutive decline from March 31, 2020 (7.96%) to June 30, 2021 (7.25%).

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The share has increased on the back of net inflows by domestic mutual funds of Rs 22,193 crore during the quarter. In value terms, the holding of domestic MFs rose to Rs 21.15 trillion, up 12.03% from the previous quarter.

Share of insurance companies rose to 5.57% as on September 30, up from 5.15% as on June 30. In value terms, it rose to Rs 14.79 trillion as on September 30, up 20.7% over the previous quarter. LIC continues to command the lion’s share of investments in equities by insurance companies (at least 69% share or Rs 10.27 trillion). LIC’s share (across 270 companies where its holding is more than 1%), however, declined to 3.87% as on September 30 from 3.92% as on June 30.

The share of DIIs as a whole increased to an all-time high of 14.79% as on September 30 from 14.06% as on June 30. In value terms, DII holding also went up to Rs 39.26 trillion as on September 30, an increase of 17.46% over the last quarter.

Share of retail investors in companies listed on NSE declined marginally to 7.33% as on September 30, from 7.40% as on June 30. In value terms, retail holding increased to Rs 19.47 trillion, up 10.64% over the previous quarter.

Share of HNIs in companies listed on NSE also declined to 1.9% as on September 30 from 2.08% on June 30. The combined retail and HNI share stood at 9.24% as on September 30, down from 9.48% as on June 30.