Domestic institutional investors (DIIs) are steadily increasing their stake in listed entities even as foreign portfolio investors (FPIs) continue to be the largest category of non-promoter shareholders in the Indian capital market.
In the quarter ended June 30, holding of mutual funds in companies listed on the National Stock Exchange (NSE) reached an all-time high of 7.35% by value, as per the latest analysis by NSE and Prime Database Group.
Further, holding of DIIs, which include mutual funds, insurance companies, banks, financial institutions and pension funds, also reached an all-time high of 13.78% by value in the quarter ended June 30, as per the analysis.
However, the holding of mutual funds and DIIs, as a whole, is still lower than the overall FPI ownership, which was at a two-year high of 19.8% in the quarter ended June 30.
The widest gap between FPI and DII holding was seen in the quarter ended March 31, 2015, when DII holding was almost half that of their foreign counterparts. Over a 10-year period from June 2009, however, while FPI ownership has risen from 13.6% to 19.8%, DII ownership has gone up only marginally, from 11.66% to 13.78%.
LIC’s holding across 303 companies, where it holds more than 1%, stood at ₹6.11 lakh crore for the quarter ended June 30. This reflected a decrease of 1.79% over the previous quarter though the insurance behemoth continued to command a lion’s share — 78% — of investments in equities by insurance companies.
The holding of promoters in the NSE-listed entities stood at 54.46% as on June 30, increasing marginally from 54.08% in the previous quarter.
Promoter holdings fall
Over a 10-year period though, promoter ownership has decreased from 61.34% on June 30, 2009 to 54.46% on June 30, 2019.