look news india
Mumbai: In terms of holdings in stocks listed on the NSE, domestic mutual fund holdings have reached an all-time high, while the gap between the holdings of foreign institutional investors (FIIs) and domestic institutional investors (DIIs) has narrowed. A research firm's report says that it has reached its lowest level ever.
The share of domestic mutual funds in the equity of NSE-listed companies increased to 8.92 per cent at the end of March 2024 from 8.81 per cent at the end of December. The increase in holdings was driven by strong net inflows of Rs 81,539 crore in the March quarter. Due to huge purchases of mutual funds, the stake of domestic institutional investors has increased to 16.05 percent. DII equity cash inflow stood at Rs 1.08 lakh crore in the March quarter.
On the other hand, according to the report, FII stake fell to 17.68 per cent at the end of March and reached an 11-year low.
As a result, the gap between FII and DII holdings has declined to an all-time low of 9.23 per cent. However, the holding percentage of foreign investors is still higher compared to DIIs.
In March 2015 this difference was 49.82 percent. However, the gap has narrowed with increased participation of domestic institutional investors in the Indian market.
The report said that considering the activity of DIIs, the day is not far when the percentage of stake of domestic investors will be higher than that of foreign investors.