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08-09-2021 03:08 PM | Source: IANS
Retail holding at all time high while MFs reduce stake
News By Tags | #392 #735

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Holding of retail investors (individuals with up to Rs 2 lakh shareholding) in companies listed on NSE reached an all time high of 7.18 per cent as on June 30, 2021, from 6.96 per cent as on March 31, 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 Rs 16.18 lakh crore from Rs 13.94 lakh crore on March 31, 2021, an increase of 16 per cent (Sensex and Nifty rose by 6.01 and 7.02 per cent 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 Rs 2 lakh shareholding), in companies listed on NSE also increased to 2.10 per cent as on June 30, 2021 from 1.98 percent on March 31, 2021, taking the combined retail and HNI holding to an all time high of 9.28 per cent.

Holding of domestic Mutual Funds in companies listed on NSE, however, reduced marginally to 7.25 per cent as on June 30, 2021 from 7.26 per cent as on March 31, 2021. According to Haldea, holding of Mutual Funds has now declined for five consecutive quarters, after 24 quarters of continuous rise (from 2.80 per cent as on March 31, 2014 to 7.96 per cent as on March 31, 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 per cent to an all time high of Rs 16.33 lakh crores as on June 30, 2021 from Rs 14.54 lakh crores on March 31, 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 per cent) declined to 3.74 per cent as on June 30, 2021, down from 3.83 per cent as on March 31, 2021 and from all-time high of 5 per cent as on June 30, 2012. In Rs value terms though, it reached an all-time high of Rs 8.43 lakh crore in quarter ending June 30, 2021, an increase of 9.88 per cent over previous quarter. LIC also continues to command a lion's share of investments in equities by insurance companies (76 per cent share).

Holding of Foreign Portfolio Investors (FPIs) also declined to 21.66 per cent as on June 30, 2021, from 22.46 per cent as on March 31, 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 Rs 48.82 lakh crore as on June 30, 2021, up 8.46 per cent from Rs 45.01 lakh crore as on March 31, 2021.

The percentage holding of private promoters in companies listed on NSE increased to 44.42 per cent as on June 30, 2021 from 44.09 per cent on March 31, 2021. Over a 12-year period (since June 2009), private promoter ownership has been steadily increasing, having increased from 33.60 per cent on June 30, 2009. In Rs value terms, private promoter holding in companies listed on NSE has gone up over 7 times to Rs 100.12 lakh crore from just Rs 14.51 lakh crore on June 30, 2009, of course, aided by new listings too. While �Indian' private promoters holding has gone up from 26.44 per cent to 35.89 per cent over the last 12 years, �foreign' promoters' holding has gone up from 7.17 per cent to 8.52 per cent.