In a significant shift, the Indian stock market has been witnessing a steady increase in the participation of domestic investors, comprising DIIs (Domestic Institutional Investors), retail investors, and HNIs (High Net Worth Individuals). This trend, which has persisted for six consecutive quarters, reflects a transformative period in India’s financial landscape, as per reports.
According to primeinfobase.com, as of 31st March this year, domestic investors’ stake in these companies reached another all-time high of 25.72%, up from 24.44% as of 31st December ’22. Despite net outflows of ₹26,211 crore from foreign institutional investors during the quarter, FIIs’ share increased marginally to 20.56% on 31st March, marking a 32 basis point (bps) rise from 20.24% as of 31st December ’22.
Pranav Haldea, Managing Director of PRIME Database Group, noted that breaking the 25% threshold for the first time is emblematic of the Indian capital market’s steady march towards self-reliance, often referred to as “Atmanirbharta.”
Over the last eight years, a structural transformation has unfolded in the Indian market, significantly altering the balance between foreign and domestic investors. In 2015, FII ownership exceeded the combined share of DIIs, retail, and HNIs. However, this gap has steadily dwindled, with the latest figures indicating a remarkable reversal.
This story is from the September, 2023 edition of Beyond Market.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the September, 2023 edition of Beyond Market.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Young Or Old? Find Your Ideal Health Plan
Age doesn't define you: find your ideal health coverage at any stage! Choose individual or family plans that fit your needs
IMPORTANT JARGON
The phase-wise voting in India for general elections began on 19th April.
BACK IN BUSINESS
Buoyed by post-pandemic travel trends and rising disposable incomes, India's hotel industry is expected to maintain its growth momentum, going forward
SCOOPING UP SUCCESS
Investments are hot, but innovation and competition are the next scoops to conquer for ice cream companies
DIG DEEPER
Investors chasing high-growth should prioritize near-term EPS explosion to justify high PE ratios, but also verify long-term business health and management before taking the plunge
SOARING AMBITIONS
Bolstered by cost advantages and government support, India's Electronics Manufacturing Services industry sets its sights on a $100 billion slice of the global market by 2026
TARGET IN SIGHT
Government policies and private sector involvement have propelled India's defence exports to new heights, putting the seemingly ambitious $5 billion target firmly within reach
PLAYING THE LONG GAME
Small and mid-cap surge in India raises regulatory concerns, but long-term investors with risk strategies may benefit from these volatile stocks given positive economic and interest rate forecasts
MAGNIFIED PRESSURE
While the asset quality of banks is anticipated to remain largely stable, challenges persist in the form of mobilizing deposits and peaking profitability
OPPORTUNITY KNOCKS, BUT CHALLENGES AWAIT
INDIA'S BOOMING PE MARKET ATTRACTS INVESTMENTS IN CONSUMER AND INFRASTRUCTURE, BUT CHALLENGES LOOM. CAN FIRMS PRIORITIZE VALUE CREATION TO NAVIGATE THE RISKS?
