FPI's December-end shareholding in NSE-listed firms at 5-year high of 23%

This is up 123 basis points over September 2020, and comes on the back of Rs 1.42 trillion foreign capital flows into domestic stocks during October-December 2020

Shareholding of foreign portfolio investors (FPIs) in listed companies is at the highest level in five years. According to data compiled by Prime Database, FPIs held 22.74 per cent stake in NSE-listed firms at the end of December 2020, up 123 basis points over September 2020. The increase comes on the back of Rs 1.42 trillion foreign capital flows into domestic stocks during the October-December 2020 period.

The value of FPI holding hit a record high of Rs 41.83 trillion, up 29 per cent compared to Rs 32.47 trillion at the end of September 2020.

The benchmark Sensex rose 25 per cent during the same period.

Government shareholding in overall NSE-listed companies hit another of 5.08 per cent, data shows. In June 2009, the government holding stood at 22.46 per cent. The sharp decline is on the back of continuous disinvestments and underperformance of PSU stocks.

Shareholding of insurance giant Life Insurance Corporation (LIC) also slipped to a record low of 3.9 per cent, down 21 basis points over the previous quarter. The value of its holding, however, hit a record high of Rs 6.81 trillion, up from 15.4 per cent over the previous quarter.

Shareholding of retail investor—those holding up to Rs 2 lakh—fell from 7.01 per cent in September to 6.9 per cent in December. The value of retail holding also reached an all-time high of Rs 12.69 trillion.

Holding of domestic mutual funds reduced to 7.42 per cent from 7.65 per cent in September 2020. This was the third consecutive quarter when MF holding has declined amid redemption pressure in equity funds. The value of MF holdings stood at Rs 13.64 trillion.

Overall domestic institutional investors (DII)— includes domestic mutual funds, insurance companies, banks, financial institutions and pension funds—shareholding stood at 13.55 per cent and their value of holdings stood at Rs 24.93 trillion at the end of December.

“The gap between FPI and DII holding has widened, DII holding now being 40.41 per cent lower than FPI holding. The widest gap between FPI and DII holding was in quarter ending March 31, 2015, when DII holding was 55.43 per cent lower than FPI holding. Over an 11-year period (since June 2009), FPI ownership has increased from 16.02 per cent to 22.74 per cent while DII ownership has increased from 11.38 per cent to 13.55 per cent,” said Pranav Haldea, managing director, Prime Database Group.