Holdings of MFs, DIIs hit all-time high; FPI ownership at two-year peak

Holding of domestic mutual funds in companies listed on the NSE reached an all-time high of 7.35 per cent in terms of value against 7.19 per cent logged in the March quarter.

In absolute value terms, their holding hit a new high of ₹10.89-lakh crore as of June-end, up by 2.4 per cent from March end, according to data of nseinfobase.com, a joint initiative of the NSE and Prime Database Group.

Holdings of domestic institutional investors touched an all-time high of 13.78 per cent in June from 13.69 per cent logged in March. Domestic institutional investors include mutual funds, insurance companies, banks, financial institutions and pension funds.

However, their holding was lower by 30 per cent, compared to foreign portfolio investors’ ownership which was at a two-year high of 19.8 per cent in June.

Pranav Haldea, Managing Director, Prime Database Group, said the gap between DII and FPI holding has shrunk steadily with DII holding 50 per cent lower than FPI in March 2015.

However, over a 10-year period, FPI ownership has increased to 19.8 per cent from 13.6 per cent, while DII ownership has increased only marginally to 13.78 per cent from 11.66 per cent.

In value terms, DII holding increased 0.89 per cent to touch a new high of ₹20.42-lakh crore in June, while that of FPI was at ₹29.36-lakh crore.

Holdings of insurance companies fell 0.53 per cent to ₹7.81-lakh crore in June. LIC’s holding decreased 1.79 per cent to ₹6.11-lakh crore.

Promoter holding

Promoter holding increased marginally to 54.46 per cent from 54.08 per cent in the March quarter. However, over a 10-year period, it decreased to 54.46 per cent in June, from 61.34 per cent, largely due to the minimum public shareholding requirement of 25 per cent prescribed by SEBI.

In value terms, promoter holding more than tripled to ₹73.33-lakh crore from just ₹23.03-lakh crore in June 2009, primarily due to increase in market capitalisation of companies.

Interestingly, while Indian promoters’ holdings have gone down to 44.8 per cent from 54.99 per cent over the last 10 years, foreign promoters’ holdings have gone up to 9.66 per cent from 6.35 per cent.

Retail ownership decreased marginally to 8.37 per cent by value as on June 30, compared to 8.52 per cent as on March 31.