NSE Promoters’ Stake Hits 3-Year High at 41.93%
Promoters held 41.93% of private-sector companies listed on India’s National Stock Exchange at the end of September, a three-year high. Domestic mutual funds also set a record, while foreign institutional investors’ ownership fell to a 14-year low, according to Prime Database data.
Promoters’ ownership of private-sector companies listed on India’s National Stock Exchange reached 41.93% at the end of September, a three-year high, as foreign institutional investors’ share fell to a 14-year low of 15.57%.
The promoters stake hits 3-year high after rising from 41.34% three months earlier, according to data from Prime Database. Domestic mutual funds also set a record, holding 11.82% of NSE-listed companies, up from 11.58%.
Promoters keep buying
Private promoters were net buyers of shares worth Rs 6,595 crore during the September quarter, their fourth consecutive quarter of net buying. Their purchases had reached Rs 36,336 crore in the quarter ended June 30, a four-year high.
Pranav Haldea, managing director of Prime Database Group, said, “While promoter selling can be due to a wide variety of reasons, promoter buying is always a positive sign.”
Private-sector promoter ownership had fallen almost consistently from 45.15% in December 2021 to 41.34% in June, before recovering over the past two quarters. Indian private promoters held 32.92% in September, up from 32.21% in March, while foreign promoters’ share rose to 9% from 8.36%.
Mutual funds gain as foreign share falls
Foreign institutional investors, including foreign portfolio investors, foreign direct investment, sovereign wealth funds and depositary receipts, held 15.57% of NSE-listed companies at the end of September. Their share was 15.91% at the end of June.
Mutual funds’ ownership rose for a 13th consecutive quarter. They invested Rs 1.22 lakh crore on a net basis during the September quarter, supported by continuing inflows through systematic investment plans, or SIPs.
Investors are putting about Rs 30,000 crore a month into SIPs, Haldea said. He described the trend as “a further sign of individual investors being convinced that mutual funds sahi hai.”
The ownership gap between mutual funds and foreign institutional investors narrowed by 58 basis points during the quarter to 3.75 percentage points. It had stood at 8.09 percentage points in September 2024.
Domestic institutions set a record
Domestic institutional investors collectively held 19.31% of NSE-listed companies as of September 30, up from 19.16% three months earlier. They invested Rs 1.69 lakh crore during the quarter, even as insurance companies’ share declined to 5.05% from 5.18%.
Foreign investors were net buyers for the quarter, with inflows of Rs 13,970 crore. That total included Rs 35,409 crore invested in the primary market, while foreign investors sold Rs 21,439 crore in the secondary market.
