The share of Domestic Institutional Investors (DIIs), which includes domestic Mutual Funds, Insurance Companies, Banks, Financial Institutions, Pension Funds etc. as a whole, along with retail and High Net-worth Individual (HNI) investors reached an all time high of 24.03 per cent as on September 30, 2022 from 23.54 per cent as on June 30, 2022, on the back of net inflows from DIIs of Rs 17,597 crore during the quarter, as per Primeinfobase, an initiative of Prime Database Group.
Meanwhile, despite net inflows from Foreign Portfolio Investors (FPIs) of Rs 48,570 crore during the quarter, FPI share declined further to a 10-year low of 19.03 per cent as on September 30, 2022, down by 17 bps from 19.20 per cent as on June 30, 2022.
According to Pranav Haldea, Managing Director, PRIME Database Group, this further showcases the rise of domestic investors and the huge counter balancing role they have played to foreign investors.
To also put this in perspective, as on March 31, 2015, FPI share was 23.30 per cent while the combined share of DII, retail and HNI was just 18.47 per cent.
Following from the above, the gap between FPI and DII holding decreased to its lowest level in this quarter, DII holding now being just 22.30 per cent lower than FPI holding (On June 30, 2022, DII holding was 26.74 per cent lower than FPI holding).
The widest gap between FPI and DII holding was in quarter ending March 31, 2015, when DII holding was 55.45 per cent lower than FPI holding.
The FPI to DII ownership ratio also declined to an all time low of 1.29 as on September 30, 2022 down from 1.37 as on June 30, 2022.
Over a 13-year period (since June 2009), FPI share has increased from 16.02 per cent to 19.03 per cent while DII share has increased from 11.38 per cent to 14.79 per cent.