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LIC, government, retail investors increased stake in listed firms in March quarter

LIC, government, retail investors increased stake in listed firms in March quarter

Country’s biggest institutional investor Life Insurance Corporation of India (LIC) increased its stake in listed companies to 3.83 per cent for the quarter ended March 31.

Following the buying in the domestic equity market, the value to total shareholding by LIC reached an all-time high of Rs 9.89 lakh crore in Q4FY22 Following the buying in the domestic equity market, the value to total shareholding by LIC reached an all-time high of Rs 9.89 lakh crore in Q4FY22

Country’s biggest institutional investor Life Insurance Corporation of India (LIC) increased its stake in listed companies to 3.83 per cent for the quarter ended March 31. Shareholding of the insurer stood at 3.67 per cent in the preceding quarter ended December 31, according to data culled from primeinfobase.com.

Following the buying in the domestic equity market, the value to total shareholding by LIC reached an all-time high of Rs 9.89 lakh crore in Q4FY22. This shows an increase of 3.75 per cent against the preceding quarter.

Share of overall domestic institutional investors (DIIs), which includes domestic mutual funds, insurance companies, banks, financial institutions, pension funds, among others, as a whole, increased to 13.70 per cent as of March 31, 2022 from 13.21 per cent as on December 31, 2021, on the back of net inflows from DIIs of a huge Rs 1,03,689 crore during the quarter. In rupee terms value terms, DII holding went up to an all-time high of Rs 35.35 lakh crore as of March 31, 2022, up 3.05 per cent over the last quarter.

Coming to individual shareholders, the combined shareholding of retail, as well as high net worth investors (HNIs), touched an all-time high for the quarter ended March 31, 2022. Data available with primeinfobase.com showed that the share of retail investors (individuals with up to Rs 2 lakh shareholding) in companies listed on the NSE reached an all-time high of 7.42 per cent in Q4 FY22 from 7.33 per cent as of December 31, 2021.

In rupee terms, retail holding companies listed on NSE reached an all-time high of Rs 19.16 lakh crore from Rs 19.05 lakh crore on December 31, 2021, indicating a growth of 0.56 per cent. Benchmark equity indices BSE Sensex and NSE Nifty gained 0.54 per cent and 0.63 per cent respectively during the same period.

Despite the share of high-net-worth individuals (HNIs) (individuals with more than Rs 2 lakh shareholding) in companies listed on NSE declining marginally to 2.21 per cent as of March 31, 2022 from 2.28 per cent on December 31, 2021, the combined retail and HNI share reached an all-time high of 9.64 per cent.

Commenting on the flows by foreign portfolio investors (FPIs), Pranav Haldea, managing director, PRIME Database Group said, “Net outflows from foreign portfolio investors (FPIs) of a huge Rs 1,10,019 crore during the quarter resulted in FPIs share declining further to a 9-year low of 20.15 per cent as on March 31, 2022, from 20.71 per cent as on December 31, 2021.”

Data further highlighted that FPIs pulled out Rs 69,370 crore from the financial services and software sector during the quarter while investing Rs 13,450 crore in metals and mining and food, beverages and tobacco.

Holding of FPIs in rupee terms in listed companies on NSE stood at Rs 51.99 lakh crore as of March 31, 2022, down 3.36 per cent from Rs 53.80 lakh crore as on December 31, 2021.

The share of the government (as a promoter) in companies listed on NSE increased to 5.48 per cent as of March 31, 2022, from 5.25 per cent as of December 31, 2021. 

Over 12 years (since June 2009), the share has been steadily declining, from 22.48 per cent as of June 30, 2009, due to the government’s divestment programme, not enough new listings and also lacklustre performance of many CPSEs relative to their private peers," said Haldea.

On the other hand, the share of private promoters in companies listed on NSE declined marginally to 45.13 per cent as of March 31, 2022 from 45.15 per cent on December 31, 2021. Over 12 years (since June 2009), private promoter share has been steadily increasing, having increased from 33.59 per cent on June 30, 2009.

There were 12 companies in which the trinity of promoters, FPIs and DIIs all increased their stake during the quarter. The list included players such as Jindal Steel & Power, Alembic Pharmaceuticals, Angel One, Raymond, Mtar Technologies, Maharashtra Seamless, Somany Ceramics, Greenply Industries, Mold-Tek Packaging, Eveready Industries India, Arihant Superstructures and Aksharchem (India).

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