look news india
Ahmedabad: The Indian stock market has been in a bullish trend for some time now. In one phase of boom, foreign investors have been buyers, while in the second phase of selling, local investors are taking advantage of the opportunity and investing heavily. Thus, the phased buying and selling is supporting the market and new record highs are being created from time to time. According to recent data, domestic institutional investors (DIIs) are now dominating the domestic stock market as compared to foreign investors.
According to the shareholding pattern of the June quarter, the shareholding gap between domestic and foreign investors has reached a record low. This is because domestic institutional investors (DIIs) such as mutual funds are aggressively investing money in the stock market, while on the other hand foreign portfolio investors are currently selling.
Market experts believe that DII's holding is increasing due to the rapid inflow of money in mutual fund equity schemes. They believe that soon their share may overtake that of foreign investors.
According to data available on PrimeInfobase, FPIs' share in NSE-listed companies fell to 17.38 per cent in the June quarter from 17.72 per cent in the March quarter, the lowest in 12 years. At the same time, the share of local institutional investors has increased to 16.23 per cent. The share of mutual funds has reached a record high of 9.52 per cent.
In the first quarter of the current financial year 2024-25, April-June 2024, DII holdings were only 1.15 per cent lower than foreign investors due to this aggressive buying. The biggest gap till date was in March 2015 when DII holdings were 10.3 per cent lower than FPIs.
According to news agency Bloomberg, in the June quarter, FPIs sold shares worth $1 billion while DIIs bought shares worth $1.25 trillion. The share of domestic institutional investors in the stock market has increased. On the other hand, the share of private promoters has fallen to 40.88 percent, the lowest in almost 7 years.
There was a marginal increase in the share of retail and high net worth individual investors. Their share has increased from 9.52 per cent to 9.62 per cent in the June quarter. Talking about Nifty 50, it registered a strong jump of 7.54 per cent in the June quarter, while it grew by 2.74 per cent in March 2024. Nifty has been in an upward trend for five consecutive quarters.
