Shareholding in India Inc: Domestic investors close gap with FPI

Indian investors now own 22.2% of BSE 500 companies, up 300 bps since March 2015

Domestic investors, including retail and institutional, are close to displacing foreign portfolio investors (FPIs) as the most influential group on Dalal Street. 

In the last two years, domestic investors’ ownership of BSE 500 companies is up nearly 300 basis points (bps) to 22.1 per cent, while FPI ownership during the same period declined by 230 bps to 23.7 per cent. 

The recent trend in domestic flows suggests it is a matter of time before domestic investors overtake FPIs to become the biggest investor group in the market. 

Experts attribute it to a growing appetite for equity assets among domestic retail