Domestic investors step back in Q1 as share in listed cos drops after 6 quarters

economictimes.indiatimes.com:

domestic investors took a back seat in the June quarter as they booked profits at higher levels. The share of domestic institutional investors, along with retail and high networth individuals (HNIs) in NSE-listed companies declined for the first time in six quarters to 22.5%, according to data sourced from Primeinfobase. The net inflows from DIIs stood at just Rs 3,368 crore during the quarter.

Meanwhile, net inflows from foreign institutional investors (FIIs) of a huge Rs 1.02 lakh crore during the quarter resulted in FII share increasing for the fourth quarter in a row to 18.94% as of June 2023. Financials and auto stocks were most preferred by foreign investors as they invested a massive Rs 44,065 crore in these stocks, while tech was the least favourite with outflows of Rs 9,376 crore. Following from the above, the gap between FII and DII holding widened in this quarter with DII holding now being 15.19% lower than FII holding.

Meanwhile, the total share of institutional investors (FII and DII) combined declined to 35.01% in the quarter ending June 2023, down from 35.24% at the end of March quarter. The share of retail investors remained the same at 7.49% from the previous quarter, while the share of HNIs increased to 1.94% from 1.88% as of March, 2023. Share of insurance companies, on the other hand, declined to 5.67% as on June 30.

LIC continues to command a lion’s share of investments in equities by insurance companies (at least 68% share or Rs 11.16 lakh crore). The insurer's share, across 273 companies where its holding is more than 1%, also decreased to 3.85% in the June quarter. It was 3.99% at the end of March quarter There were at least 12 companies in which the trinity of promoters, FIIs and DIIs all