FPI: DIIs closing gap with FPIs in race to D-Street... - Allhindi.in
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FPI: DIIs closing gap with FPIs in race to D-Street…

Boosted by a strong retail push, domestic institutions are closing in the gap with foreign portfolio investors (FPIs) to be a dominant force on Dalal Street.

At the end of the June quarter, DII holding was just 26.77 per cent lower than FPI holding against 31.99 per cent at the end of March quarter.

This gap is at the lowest level this quarter, data available
primeinfobase.com, PRIME Database Group, suggested.

The widest gap between FPI and DII holding was in the quarter ending March 31, 2015, when DII holding was 55.45 per cent lower than FPI holding, PRIME Database Group said in a note.

“The FPI to DII ownership ratio also declined to an all-time low of 1.37 as on June 30, 2022, down from 1.47 as on March 31, 2022. Over a 13-year period (since June 2009), FPI share has increased from 16.02 per cent to 19.20 per cent while DII share has increased from 11.38 per cent to 14.06 per cent,” Primebatabase said.

June quarter saw the ownership of DIIs, retail and high net-worth individuals (HNI) hitting an all-time high of 23.53 per cent at the end of June quarter, led by strong Rs 1,28,277 crore inflows in the three-month period.

These investors together held 23.34 per cent of the listed stock ownership as of March 31.

The quarter saw foreign portfolio investors (FPIs) selling stocks worth Rs 1,07,340 crore, which resulted in their share declining to a 10-year low of 19.20 per cent, down 96 basis points from the March quarter’s 20.16 per cent.

“This further showcases the rise of domestic investors and the huge counterbalancing role they have played to foreign investors. To also put this in perspective, as on March 31, 2015, FPI share was 23.30 per cent while the combined share of DII, retail and HNI was just 18.47 per cent,” said Pranav Haldea, Managing Director at PRIME Database Group.

The total institutional investor share viz. FPI and DII declined to a 7-year low of 33.25 per cent in the quarter ending June 30 from 33.87 per cent, sequentially.

Share of domestic mutual funds in companies listed on NSE rose for the fourth quarter running and reached a two-year high of 7.95 per cent as on June 30 from 7.75 per cent as on March 31.

This was after five quarters of consecutive decline from March 31, 2020 (7.96 per cent) to June 30, 2021 (7.25 per cent).

The share has increased on the back of net inflows by domestic mutual funds of Rs 73,857 crore during the quarter. In rupee value terms though, the holding of domestic mutual funds went down by 5.52 per cent to Rs 18.88 lakh crore as on June 30 from Rs 19.99 lakh crore on March 31.

Sensex and Nifty declined 9.48 and 9.65 per cent, respectively, during this period.

Share of insurance companies as a whole also rose to 5.15 per cent from 5 per cent QoQ. In value terms though, it went down by 5.01 per cent from the previous quarter to Rs 12.24 lakh crore.

Pime Database said

continues to command a lion’s share of investments in equities by insurance companies (at least 76 per cent share or Rs 9.30 lakh crore). LIC’s share (across 286 companies where its holding is more than 1 per cent) rose to 3.92 per cent as on June 30, 2022 from 3.83 per cent as on March 31, 2022

Share of DIIs as a whole thus increased to 14.06 per cent as on June 30 from 13.71 per cent as on March 31. In value terms though, DII holding went down to Rs 33.40 lakh crore as on June 30, a decrease of 5.54 per cent over the last quarter.

Share of retail investors (individuals with up to Rs 2 lakh shareholding in a company) in companies listed on NSE declined marginally to 7.40 per cent from 7.42 per cent QoQ. In value terms too, retail holding reduced to Rs 17.58 lakh crore from Rs 19.15 lakh crore QoQ, a decrease of 8.18 per cent.

Share of high net worth individuals (HNIs) (individuals with more than Rs 2 lakh shareholding in a company) in companies listed on NSE also declined to 2.08 per cent as on June 30, 2022, from 2.21 per cent on March 31, 2022.

As such, the combined retail and HNI share stood at 9.47 per cent as on June 30, 2022, down from 9.63 per cent as on March 31, 2022.

While the share of retail and HNI investors came down, the collective share of retail, HNI and domestic mutual funds put together reached an all-time high of 17.42 per cent as on June 30 up from 17.38 per cent as on March 31.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)

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