The Indian market has been witnessing a strong surge in the number of retail investors following the coronavirus outbreak. Retail investors in NSE-listed companies reached an all-time high of 7.8 percent as of the June quarter of FY22, a PRIME Database report has said.
"Holding of retail investors (individuals with up to Rs 2 lakh shareholding) in companies listed on NSE reached an all-time high of 7.18 percent as on June 30, 2021 from 6.96 as on March 31, 2021," primeinfobase.com, an initiative of PRIME Database Group, said.
"In rupee terms too, retail holding in NSE-listed firms reached an all-time high of Rs 16.18 lakh crore from Rs 13.94 lakh crore on March 31, 2021, an increase of 16 percent."
The COVID-induced market crash in 2020 and the subsequent recovery, easy availability of trading apps for the tech-savvy generation, work from home due to the pandemic and the pursuit of alternate sources of income seem to have fuelled the influx of retail investors.
Market experts also point to fear of missing out (FOMO) factor triggering the strong influx as many retail investors do not want to miss the ongoing market rally.
According to Pranav Haldea, Managing Director, PRIME Database Group, a buoyant secondary market and a flurry of new listings helped in channelising retail savings into the capital market.
Holding of high net-worth individuals (HNIs) listed on NSE also increased to 2.10 percent as on June 30, 2021, from 1.98 percent on March 31, 2021, taking the combined retail and HNI holding to an all-time high of 9.28 percent, the report said.
HNIs are individuals with more than Rs 2 lakh shareholding in companies.
Holding of domestic mutual funds in NSE-listed firms, however, reduced marginally to 7.25 percent as on June 30, 2021, from 7.26 percent as on March 31, 2021, the PRIME Database report said.
According to Haldea, mutual funds holdings have now been going down for five consecutive quarters after 24 quarters of continuous rise (from 2.80 percent as on March 31, 2014, to 7.96 percent as on March 31, 2020).
In rupee terms though, the holding of domestic mutual funds went up by 12.30 percent to an all-time high of Rs 16.33 lakh crore as on June 30, 2021 from Rs 14.54 lakh crore on March 31, 2021.
These trends show the willingness and preference of individual investors to invest directly rather than indirectly via mutual funds, Haldea said.
Holding of foreign portfolio investors (FPIs) also declined to 21.66 percent as on June 30, 2021 from 22.46 percent as on March 31, 2021.
Holding of domestic institutional investors (DII), which includes domestic mutual funds, insurance companies, banks, financial institutions, pension funds, etc, as a whole, also decreased to an 11-quarter low of 13.19 percent as on June 30, 2021—from 13.42 percent on March 31, 2021, the report said.
Stocks that hogged the limelight
The top 10 companies with the highest retail holding in the June quarter were Proseed India, Ujaas Energy, ATN International, Sintex Industries, Punj Lloyd, Vikas Ecotech, Bartronics India, Sintex Plastics Technologies, Ortin laboratories and Ujra Global.
There were 11 stocks in which promoters, FPIs and DIIs all increased their stake during the quarter. They were SBI Cards & Payment Services, Tanla Platforms, Lux Industries, Jindal Stainless (Hisar), Bharat Rasayan, Suprajit Engineering, NIIT, Globus Spirits, Panama Petrochem, Thangamayil Jewellery and Vikas Lifecare.
The top 10 stocks with the highest FPI holding in the June quarter were HDFC, ICICI Bank, Shriram Transport Finance, Zee Entertainment, IndusInd Bank, Axis Bank, Apollo Hospitals, Infosys, HDFC Bank and UPL.
Balmer Lawrie, UTI Asset Management, Shriram EPC, GTL Infrastructure, Bombay Rayon Fashions, Yes Bank, Federal Bank, ITC, City Union Bank and Crompton Greaves Consumer Electricals were the top 10 stocks with the highest DII holding in the June quarter.
The top 10 companies with the highest mutual fund holding were KNR Constructions, Federal Bank, Crompton Greaves Consumer Electricals, City Union Bank, Greenply Industries, Equitas Holdings, Techno Electric & Engineering, DCB Bank, Ahluwalia Contracts and PNC Infratech.Disclaimer: The above report is compiled from information provided by primeinfobase.com. Moneycontrol advises users to check with certified experts before taking any investment decisions.