Retail investors pie in NSE-listed entities at record high
Share of retail investors (individuals with up to Rs2 lakh shareholding) in listed companies reached to an all-time high of 7.42% as on March 31, 2022, from 7.33% as on December 31, 2021; The share of retail, HNI and domestic MFs put together also reached an all-time high of 17.38% as on March 31, 2022
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New Delhi: Share of retail investors (individuals with up to Rs2 lakh shareholding) in companies listed on NSE reached an all-time high of 7.42 per cent as on March 31, 2022 from 7.33 per cent as on December 31, 2021, as per Primeinfobase, an initiative of Prime Database Group.
In INR value terms too, retail holding in companies listed on NSE reached an all-time high of Rs 19.16 lakh crore from Rs 19.05 lakh crore on December 31, 2021, an increase of 0.56 per cent, according to Pranav Haldea, Managing Director, PRIME Database Group. Sensex and Nifty rose by 0.54 and 0.63 per cent respectively during this period.
Despite share of High Net Worth Individuals (HNIs) (individuals with more than Rs 2 lakh shareholding) in companies listed on NSE declining marginally to 2.21 per cent as on March 31, 2022 from 2.28 percent on December 31, 2021, the combined retail and HNI share reached an all-time high of 9.64 per cent.
According to Haldea, net outflows from Foreign Portfolio Investors (FPIs) of a huge Rs 1.10 lakh crore during the quarter resulted in FPIs share declining further to a 9-year low of 20.15 per cent as on March 31, 2022, from 20.71 per cent as on December 31, 2021.
Portfolio holdings in companies listed on NSE
Most notably, FPIs pulled out Rs 69,370 crore from Financial Services and Software sector during the quarter while investing Rs 13,450 crore in Metals & Mining and Food, Beverages & Tobacco. Holding of FPIs (in INR value terms) in companies listed on NSE stood at Rs 51.99 lakh crore as on March 31, 2022, a decrease of 3.36 per cent from Rs 53.80 lakh crore as on December 31, 2021.
According to Haldea, share of domestic Mutual Funds in companies listed on NSE rose for the third quarter running and reached 7.75 per cent as on March 31, 2022, up from 7.46 per cent as on December 31, 2021.
This was after 5 quarters of consecutive decline from March 31, 2020 (7.96 per cent) to June 30, 2021 (7.24 per cent). The share has increased on the back of net inflows by domestic Mutual Funds of a huge Rs 67,423 crore during the quarter. In INR value terms too, the holding of domestic Mutual Funds went up by 3.08 per cent to an all-time high of Rs 19.99 lakh crore as on March 31, 2022 from Rs 19.39 lakh crore on December 31, 2021.
The share of retail, HNI and domestic Mutual Funds put together also reached an all-time high of 17.38 per cent as on March 31, 2022, up from 17.08 per cent as on December 31, 2021.
