New Delhi: Equity ownership by domestic investors, including institutions and high net-worth individuals, rose to an all-time high of 24.44 per cent in the December quarter, registering its fifth consecutive quarterly increase. The ownership of retail investors in the market stood at 7.23 per cent in December 2022, marginally lower than 7.34 per cent in September 2022. But in rupee terms, it increased to Rs 19.94 lakh crore from Rs 19.48 lakh crore in the previous quarter. An increase of 2.35 percent.
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 increasing dominance of domestic investors. Net inflows from domestic institutional investors (DIIs) stood at Rs 27,134 crore during the quarter, while net inflows from foreign institutional investors (FIIs) stood at Rs 47,349 crore, resulting in a marginal increase in their shareholding to 20.18 per cent from 19.98 per cent in December 2022. 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 declined from 1.33 in September 2022 to an all-time low of 1.32 in December 2022. In the 13-year period since June 2009, the share of FIIs has increased from 16.02 per cent to 20.18 per cent. per cent while the share of DII 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 followed by a decline in 5 consecutive quarters from March 2020 when it stood at 7.96 per cent to June 2021 when it stood at 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. LIC continues to hold the lion’s share of investments in equity among insurers; At least 70 per cent shares or Rs 10.91 lakh crore. 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 to increase from 15.01 per cent in September 2022 to 15.32 per cent in December 2022. ,
On the other hand, the share of retail ownership (those investing less than Rs 2 lakh) declined marginally to 7.23 per cent in December 2022 from 7.34 per cent in September 2022. But in rupee terms, it increased to Rs 19.94 lakh crore. 19.48 lakh crore in the previous quarter from Rs 19.48 lakh crore in the period under review.
The share of HNIs (individuals with shareholding of more than Rs 2 lakh in a company) also declined 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. down from 9.24 per cent in September 2022.
In rupee terms, FII holdings stood at Rs 55.70 lakh crore in December 2022, an increase of 4.98 per cent from Rs 53.06 lakh crore in September 2022. This is despite the fact that he pulled out Rs 3,162 crore from consumer durables. And the oil, gas and consumable fuel sector invested Rs 19,391 crore in financial services and FMCG during the quarter.
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.