Retail shareholding in NSE-listed companies hits all-time high of 7.32% in Dec

The share of retail investors in NSE- listed companies has reached an all-time high of 7.32 per cent in December 2021, and in rupee terms it has touched a record high of Rs 18.98 lakh crore, says a report.

However, there was an overall fall in institutional shareholding, largely due to the massive Rs 38,521 crore net outflows from foreign portfolio investors (FPIs) during the quarter, which resulted in their share declining to a nine-year low of 20.74 per cent, from 21.46 per cent.

According to data compiled by Primeinfobase.com, an arm of Prime Database Group, retail shareholding in NSE-listed companies touched an all-time high of 7.32 pc in December, up from 7.13 per cent in September 2021.

Moreover, the value of retail shareholders in rupee terms has touched a record high of Rs 18.98 lakh crore, up from Rs 18.16 lakh crore in September, an increase of 4.54 per cent.

The analysis is based on shareholding patterns of 1,714 of the total 1,768 NSE companies.

Prime Database Group managing director Pranav Haldea said this is despite the fact that Sensex and Nifty declined by 1.48 and 1.50 per cent respectively during this period.

Similarly, share of high networth individuals (those with over Rs 2 lakh investment) also reached an all-time high of 2.26 per cent during this period, thus taking the combined retail (those with up to Rs 2 lakh investment) and HNI share to also an all-time high of 9.58 per cent.

Share of domestic mutual funds continued to rise and reached 7.47 per cent in December 2021, up from 7.36 per cent in September 2021 -- after five quarters of consecutive decline from March 2020, when it was 7.96 per cent.

The increase is due to Rs 51,909 crore net inflows from domestic MF. In rupee terms, it went up by 3.26 per cent to an all-time high of Rs 19.36 lakh crore in December 2021, from Rs 18.75 lakh crore in September 2021.

The share of retail, HNIs and domestic MFs put together is at an all-time high of 17.05 per cent, up from 16.61 per cent.

Most notably, FPIs pulled out Rs 44,820 crore from financial services and software sectors during the quarter while investing Rs 20,334 crore in retail. Holding of FPIs in rupee terms stood at Rs 53.78 lakh crore, down by 1.67 per cent from Rs 54.69 lakh crore in September 2021, according to the report.

LIC's share, across 278 companies where its holding is over 1 per cent, declined marginally to an all-time low of 3.67 per cent, from 3.69 per cent and from all-time high of 5 per cent in June 2012.

But in rupee terms, it reached an all-time high of Rs 9.53 lakh crore in the quarter under review, an increase of 1.46 per cent over from the previous quarter.

Share of insurers as a whole declined to a six-year low of 4.79 per cent, down from 4.81 per cent. In rupee value terms though, it went up by 1.30 per cent from the previous quarter to an all-time high of Rs 12.42 lakh crore.

Share of domestic institutional investors, which includes domestic MFs, insurers, banks, financial institutions, pension funds etc, as a whole, increased to 13.22 percent from 13.12 percent, on the back of Rs 66,262 crore net inflows from DIIs during the quarter.

In rupee terms, DII holding went up to an all-time high of Rs 34.27 lakh crore, an increase of 2.48 per cent over the previous quarter.

Yet, total institutional share (of FPIs and DIIs) declined to a three-year low of 33.95 per cent from 34.59 per cent during the reporting period.

The gap between FPI and DII holding decreased in the quarter, with DII holding now being 36.28 per cent, while FPI holding is at 38.86 per cent.

The top 10 companies by mcap accounted for a huge 90.21 per cent of overall FPI holding, down from 90.59 per cent, and 83.86 per cent of overall DII holding (down from 84.15 per cent) and 80.64 per cent of overall MF holding (down from 81.20 per cent).

The share of the government (as promoter) in NSE-listed companies decreased to 5.26 per cent, from 5.56 per cent.

Due to the divestment programme since June 2009, this has been steadily declining when it stood at 22.48 per cent. In rupee terms, government holding decreased by 3.77 per cent to Rs 13.63 lakh crore, from Rs 14.16 lakh crore.

The share of private promoters increased to 45.15 per cent from 44.89 per cent. Since June 2009, this has been steadily increasing when it was 33.60 per cent. In value terms, this has gone up over eight times to Rs 117.07 lakh crore from just Rs 14.50 lakh crore in June 2009.

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