MF share in NSE cos hits fresh high in Q4

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The share of domestic mutual funds (MFs) in companies listed on NSE rose to a fresh all-time high of 8.92 per cent for the quarter ended March, powered by net inflows of ₹81,539 crore during the quarter.

Life Insurance Corporation of India’s share rise to 3.75 per cent, lifting the overall share of insurance companies to 5.40 per cent during the quarter, data from primeinfobase.com show.

The share of domestic institutional investors rose to 16.05 per cent from 15.96 per cent during the quarter.

The share of foreign portfolio investors (FPIs) declined to a 11-year low of 17.68 per cent, down by 51 bps from 18.19 per cent as on December 31, 2023, resulting in the gap between FPI and DII holding narrowing further to an all-time low during the quarter.

The FPI to DII ownership ratio also decreased to an all-time low of 1.10 in March from an all-time high of 1.99 nine years ago.

DIIs increased their allocation most to energy (to 7.77 per cent of their total holding as on March 31, 2024 from 6.70 per cent in the previous quarter) and decreased their allocation to Information Technology (from 9.25 per cent to 8.41 per cent in the same period).

FPIs increased their allocation most to Consumer Discretionary (15.03 per cent to 16.27 per cent) while they decreased their allocation most to Financial Services (30.90 per cent to 28.39 per cent).

Pvt promoters

The share of the government (as promoter) increased to a 7-year high of 10.38 per cent as on March 31, 2024 on the back of strong performance of several PSUs. On the other hand, the share of private promoters declined to a 5-year low of 41 per cent as on March 31, 2024. Over the last 18 months alone, it has fallen by 361 basis points from 44.61 per cent on September 30, 2022. This is the result of stake sales by promoters to take advantage of bullish markets, relatively lower promoter holding in some of the IPO companies and overall institutionalisation of the market.

The share of retail investors (individuals with up to ₹2 lakh shareholding in a company) decreased marginally to 7.50 per cent as on March 31, 2024 from 7.58 percent on December 31, 2023. The share of High Net Worth Individuals (HNIs), too, decreased slightly to 2 per cent as on March 31, 2024 from 2.06 per cent on December 31, 2023. As such, the combined retail and HNI share declined to 9.50 per cent as on March 31, 2024 from 9.64 per cent in the previous quarter.