Retail ownership in NSE companies crosses Rs 10 lakh crore for first time

Mumbai: India’s robust growth is now anchored in democratic ownership — far more firmly than ever before. Retail savers now collectively own more than Rs 10 lakh crore of stocks, a seemingly daunting ownership threshold breached for the first time. Their conviction has also raised proportional retail ownership of total growth assets to an 11-year high — 7.01 per cent as on September 30, 2020.By actual value terms, retail holding in NSE-listed companies reached an all-time high of Rs 10.58 lakh crore as on September 30, up from Rs 9.16 lakh crore on June 30, primeinfobase.com data showed.By way of proportional share of ownership, this is the highest since the September quarter of 2009.“What is also significant to note is the continuing overwhelming presence of retail investors in mid-cap and smaller companies, which institutional investors typically stay away from,” said Pranav Haldea, managing director, PRIME Database Group.Holdings of domestic mutual funds reduced to 7.65 per cent as on September 30, from 7.81 per cent as on June 30, due to net outflows of Rs 21,536 crore during the quarter. Holding of MFs has now declined for two consecutive quarters, after 24 quarters of continuous rise. “Unlike in the past, retail investors have seen increase in interest to buy into good-quality companies at lower levels,” said Gaurav Dua, head, capital market strategy & investments, Sharekhan. The percentage holding of private promoters in NSE-listed companies continued to increase and reached an all-time high of 45.38 per cent.As on September 30, 2020. Since June 2009, private promoter ownership has been steadily increasing from 33.61 per cent on June 30, 2009.

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