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After rising for 6 quarters in a row, from 22.40 per cent as on September 30, 2021 to 25.73 per cent as on March 31, 2023, the share of Domestic Institutional Investors (DIIs) along with Retail and High Net-worth Individual (HNI) investors in companies listed on NSE declined to 25.50 per cent as on June 30, 2023, as per Primeinfobase, an initiative of Prime Database Group.

According to Pranav Haldea, Managing Director, Prime Database Group, this was on account of profit booking by LIC, mutual funds as also retail and HNI investors with markets reaching all-time highs. Net inflows from DIIs stood at just Rs 3,368 crore during the quarter.

Meanwhile, net inflows from Foreign Institutional Investors (FIIs) of a huge Rs 1,02,617 crore during the quarter resulted in FII share increasing for the fourth quarter in a row to 18.94 per cent as on June 30, 2023 (up by 7 bps from 18.87 per cent as on March 31, 2023).

While FIIs pumped in a huge Rs 44,065 crore and Rs  16,818 crore in Financial Services & Auto sector respectively, they pulled out Rs 9,376 crore from Information Technology sector during the quarter.

Following from the above, the gap between FII and DII holding widened in this quarter with DII holding now being 15.19 per cent lower than FII holding (On March 31, 2023, DII holding was 13.29 per cent lower than FII holding).

The widest gap between FII and DII holding was in quarter ending March 31, 2015, when DII holding was 49.82 per cent lower than FII holding. The FII to DII ownership ratio also increased to 1.18 as on June 30, 2023 up from 1.15 as on March 31, 2023.

Meanwhile, the total share of institutional investors, FII and DII combined declined to 35.01 per cent in quarter ending June 30, 2023, down from 35.24 in quarter ending March 31, 2023.