FII’s relentless selling has taken centerstage recently, owing to various macro factors; but to name two, valuation-wise charged-up domestic markets and US markets showing optimism over the return of Trump. A slowdown in India Inc’s earnings starting from Q2 FY25 could be quoted as a catalyst.
At this juncture, PRIME Infobase, a provider of corporate databases in India, recently came out with its quarterly shareholding tracker updated as of Q3 FY25. This data is compiled with the data of all NSE-listed companies except 36 that have not submitted their shareholding pattern for Q3.
Here are four interesting data points taken from the report, looking at where different types of investors have their monies parked within the listed equity space and how they compare against each other.
HDFC Bank and ICICI Bank stand as favourites of both FIIs and DIIs, enjoying highest holding in market value terms from both the segments. Sector-wise too, FIIs stand as the largest shareholder category, per the shareholding pattern, in the financial services sector, beating both private promoters and the Government of India. Also, the top 10 holdings of both FIIs and DIIs include four and three companies respectively from the financial services sector, which seems fair, considering the underperformance since Covid-19 and being one of the very few sectors which offer valuation comfort now.
FII to DII ratio plummeted to yet another decadal low in Q3 FY25, sequentially dropping quarter on quarter since Q2 FY24. With the selloff by FIIs extending into Q4 FY25 and DIIs continuing to load up supported by strong retail SIPs, DIIs could well overtake FIIs in terms of holdings.
Singapore- and the US-based FIIs lead with most investments, as of Q3 FY25, adding upto almost 60 per cent of the entire FII investments.
Private promoters continued to dilute their holdings with 20 basis points fall year on year. While promoter stake sale is an obvious reason, record qualified institutional placements (QIPs) done this year also added up. GoI’s share in the holdings, on the other hand, have been on the rise since Covid-19, thanks to the rally in PSUs. However, Q3 FY25 saw GOI stake dip nominally owing to the recent sell-off in equities and especially PSUs.