You are here: Home » Markets » News
Business Standard

Retail investors' holdings drop by Rs 1.67 trn to Rs 17.58 trn in Q1: Data

Shareholding of high networth individuals (HNIs) - those holding shares worth more than Rs 2 lakh in a company - also declined to 2.08 per cent as on June 30, from 2.21 per cent on March 31

Topics
Retail investors | high networth individuals | Mutul Fund

Sundar Sethuraman  |  Thiruvananthapuram 

REITs, InvITs, AIFs and MFs all operate within a trust structure, with a few common entities such as sponsors, trustees, the asset management company and the asset manager.
Individual investor flows into equity markets via direct investing may have gone down, but their investments through mutual funds (MFs) continue to be strong.

The holding value of shares held by fell Rs 1.67 trillion during the three-month period ended June to Rs 17.58 trillion, according to a report by PRIME Database.

Retail shareholders — individuals who own shares of less than Rs 2 lakh in a — increased their shareholding in 975 companies and reduced it in 730 companies. Their average holding declined marginally to 7.4 per cent as on June 30, from 7.42 as on March 31.

Meanwhile, the shareholding of (HNIs) — those holding shares worth more than Rs 2 lakh in a — also declined to 2.08 per cent as on June 30, from 2.21 per cent on March 31.

The erosion of individual investor wealth comes on the back of a 10 per cent drop in the benchmark Nifty during the quarter ended June — its worst quarterly performance since March 2020.

The fall in individual investor holding also impacted their activity, with trading volumes in the equity cash segment dropping to their lowest levels since March 2020. Also, there was moderation in new demat accounts opened during the quarter.

Individual investor flows into via direct investing may have gone down, but their investments through mutual funds (MFs) continue to be strong.

The share of domestic MFs rose for the fourth straight quarter to reach a two-year high of 7.95 per cent as on June 30, up from 7.75 per cent as on March 31.

The companies where increased their stake fell an average 10.4 per cent during the quarter, while those that saw an increase in retail holding fell just about a per cent.

Stocks where HNIs pared their stake fell nearly 7 per cent during the quarter, while companies that saw a decrease in holding fell an average 6.2 per cent.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, August 03 2022. 18:46 IST
RECOMMENDED FOR YOU
.