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Sunday, June 13, 2021

DII holding in listed cos falls but total value rises to all-time high

Net outflows from DIIs was at Rs 23,124 crore during the quarter. In rupee value terms, DII holding rose to an all-time high of Rs 25.75 lakh crore by this March, an increase of 3.27 per cent over the last quarter.

By: ENS Economic Bureau | Mumbai |
Updated: May 11, 2021 5:19:53 am
The Sensex and Nifty rose by 3.70 and 5.10 per cent, respectively, in this period. LIC also continues to command a lion’s share of investments in equities by insurance companies (76 per cent).

The holding of domestic institutional investors (DII) — domestic mutual funds, insurance companies, banks, financial institutions and pension funds — as a whole declined to a 10-quarter low of 13.03 per cent as of March 2021 from 13.56 per cent as on December 31, 2020.

Net outflows from DIIs was at Rs 23,124 crore during the quarter. In rupee value terms, DII holding rose to an all-time high of Rs 25.75 lakh crore by this March, an increase of 3.27 per cent over the last quarter.

LIC’s holding (across 296 companies where its holding is over 1 per cent) slipped to an all-time low of 3.66 per cent as on March 31, 2021, down from 3.70 per cent as of December 2020 and from all-time high of 5 per cent as of June 2012, as per primeinfobase.com of the Prime Database Group.

According to Pranav Haldea, MD, Prime Database, this was on account of profit booking by India’s largest institutional investor. In rupee value terms though, it reached an all-time high of Rs 7.24 lakh crore during the quarter ended March 2021 — a rise of 6.30 per cent over the previous quarter.

The Sensex and Nifty rose by 3.70 and 5.10 per cent, respectively, in this period. LIC also continues to command a lion’s share of investments in equities by insurance companies (76 per cent).

Holding of insurance companies as a whole also fell to a 5-year low of 4.80 per cent by March, from 5.00 per cent last December. In rupee terms, it rose by 3.09 per cent over the previous quarter to a new high of Rs 9.48 lakh crore in March.

Holding of domestic mutual funds in companies listed on the NSE also fell to 7.23 per cent by March, from 7.42 per cent in December 2020.

According to Haldea, holding of mutual funds has now declined for four consecutive quarters, after 24 quarters of continuous rise (from 2.81 per cent as on March 31, 2014 to 7.96 per cent as on March 31, 2020). Net outflows by domestic mutual funds stood at Rs 26,810 crore during the quarter, as retail investors booked profits. In rupee terms, the holding of domestic mutual funds went up by 4.81 per cent to Rs 14.30 lakh crore from Rs 13.64 lakh crore.

Holding of foreign portfolio investors (FPIs) stood at 22.60 per cent as on March 31, 2021, down from 22.74 per cent as of December 2020, despite net inflows of Rs 55,741 crore during the quarter, according to Haldea. In rupee terms, FPI ownership also reached an all-time high of Rs 44.66 lakh crore as of March 2021, up 6.77 per cent from Rs 41.83 lakh crore as on December 31, 2020.

According to Haldea, retail holding (individuals with up to Rs 2 lakh shareholding) in companies listed on NSE remained the same at 6.90 per cent as on March 31, 2021. In rupee terms, though, retail holding in companies listed on NSE also reached an all-time high of Rs 13.63 lakh crore from Rs 12.69 lakh crore on December 31, 2020.

On an overall basis, retail holding went up in 863 companies listed on NSE in the last one quarter. The average stock price of these companies in the same period increased by 5.52 per cent. On the other hand, retail holding went down in 713 companies. The average stock price of these companies increased by a much higher 15.57 per cent. This further validates the oft-used phrase that “retail buys at the peak and sells at lows”, Haldea said.

He said the percentage holding of private promoters in companies listed on NSE increased marginally to 44.85 per cent as on March 31, 2021 from 44.32 per cent on December 31, 2020. Over a 12-year period (since June 2009), private promoter ownership has been steadily increasing, having increased from 33.60 per cent on June 30, 2009. In rupee terms, private promoter holding in companies listed on NSE has gone up over 6 times to Rs 88.63 lakh crore from just Rs 14.51 lakh crore on June 30, 2009, aided by new listings. While ‘Indian’ private promoters’ holding has gone up from 26.45 per cent to 35.95 per cent over the last 12 years, ‘foreign’ promoters’ holding has gone up from 7.16 per cent to 8.90 per cent.

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