Shift in Market Dynamics

For the first time since 2006, retail investors and mutual funds in India have collectively surpassed foreign portfolio investors (FPIs) in terms of shareholding, according to a recent analysis by the National Stock Exchange (NSE).

Record Highs for Mutual Funds

Mutual funds have reached an all-time high, owning 10% of NSE-listed companies, thanks to sustained SIP inflows. In the December quarter alone, MFs injected a record net amount of Rs 1.5 lakh crore, with an additional Rs 71,000 crore in the first one-and-a-half months of the following quarter.

Individual Investors on the Rise

Individual investors' direct non-promoter ownership in Indian companies has hit an 18-year high of 9.8%, with record investments of about Rs 56,000 crore in the December quarter. This marks a significant shift in the Indian equity markets, with individual investors now owning 18.2% of the total market cap, outpacing FPIs for the first time since 2006.

Decline in Promoter Holding

The analysis also highlights a steady decline in promoter holding in Indian companies, with the total promoters' share in NSE-listed companies falling to 49.6%. The most significant dip was observed in government holdings, with Nifty experiencing a pronounced drop to a two-decadal low of 41.4%.