Share of domestic institutional investors (DIIs), along with retail and high networth individual (HNI) investors reached an all-time high of 23.53 per cent as on June 30, 2022, from 23.34 per cent as on March 31, 2022, according to data from PRIME Database. It is because of a total net inflow of a huge Rs 1,28,277 crore from DIIs during the June 2022 quarter.
Meanwhile, net outflows from foreign portfolio investors (FPIs) of Rs 1,07,340 crore during the June 2022 quarter resulted in FPIs share declining further to a 10-year low of 19.20 per cent as on June 30, 2022, down by 96 bps from 20.16 per cent as on March 31, 2022, according to PRIME Database.
DIIs include domestic mutual funds, insurance companies, banks, financial institutions and pension funds, among others.
PRIME Database Managing Director Pranav Haldea said it further showcases the rise of domestic investors and the huge counter-balancing role they have played to foreign investors. To also put this in perspective, as on March 31, 2015, FPIs’ share was 23.30 per cent, while the combined share of DII, retail and HNI was just 18.47 per cent.
The gap between FPI and DII holding decreased to its lowest level in this quarter, DII holding now being just 26.77 per cent lower than FPI holding (on March 31, 2022, DII holding was 31.99 per cent lower than FPI holding). The widest gap between FPI and DII holding was in the quarter ended March 31, 2015, when DII holding was 55.45 per cent lower than FPI holding, according to PRIME Database.
It added that the FPI-DII ownership ratio also declined to an all-time low of 1.37 as on June 30, 2022, down from 1.47 as on March 31, 2022. Over a 13-year period (since June 2009), FPI share has increased from 16.02 per cent to 19.20 per cent, while the DII share has increased from 11.38 per cent to 14.06 per cent.
The total institutional investor’s share, including both FPI and DII, declined to a 7-year low of 33.25 per cent in the quarter ended June 30, 2022, down from 33.87 per cent in the quarter ended March 31, 2022.
Share of domestic mutual funds in companies listed on the NSE rose for the fourth quarter running and reached a two-year high of 7.95 per cent as on June 30, 2022, up from 7.75 per cent as on March 31, 2022. This was after five quarters of consecutive decline from March 31, 2020, (7.96 per cent) to June 30, 2021, (7.25 per cent), it said.
The share has increased on the back of net inflows by domestic mutual funds of Rs 73,857 crore during the quarter. In rupee value terms though, the holding of domestic mutual funds went down by 5.52 per cent to Rs 18.88 lakh crore as on June 30, 2022 from Rs 19.99 lakh crore on March 31, 2022. Sensex and Nifty declined by 9.48 and 9.65 per cent, respectively, during this period.
“Share of DIIs as a whole increased to 14.06 per cent as on June 30, 2022, from 13.71 per cent as on March 31, 2022. In rupee value terms though, DII holding also went down to Rs 33.40 lakh crore as on June 30, 2022, a decrease of 5.54 per cent over the last quarter,” it added.