According to a study by the brokerage division of global financial services major Citigroup, promoter holding went up to 58 per cent in BSE-500 companies in the second quarter this fiscal from  54 per cent in the previous three-month period. In contrast, FIIs, mutual funds, banks, insurance companies and retail investors cut down their holdings.

Fall in FII holdings

According to Citigroup Research analysis of ownership patterns, the BSE-500 company saw a fall in FII holdings to 20.2 per cent in July-September from 22 per cent in the previous quarter.

Domestic mutual funds also reduced their holding to 3.7 per cent in the period under review from 4.3 per cent, while insurance firms and other institutions reduced their stake to five per cent from 5.5 per cent. The companies also saw retail investors cutting down their stake to 9.2 per cent from the 10 per cent. Among the 30 blue-chip firms comprising the benchmark Sensex, FII holdings amount to about 26 per cent, while promoters own about 49.3 per cent stake in the companies. Financial institutions and retail investors together hold the remaining stake.

The BSE-500 firms with highest rise in promoter holdings include Bharti Airtel, Adlabs Films, Mphasis, Mico and Adani Enterprises. The total capitalisation of the Indian stock market rose by more than Rs 10 trillion to Rs 52.2 trillion in July-September, while the benchmark Sensex rose by about 2,200 points (over 17 per cent) during the period.

According to Citigroup, ownership patterns have changed considerably in India over the last five years, with foreign ownership rising from just 12 per cent in 2001 to over 20 per cent at present.