Retail investment in Indian companies at 11-year high

According to the data given by SEBI, over 3.4 million new Demat accounts have been opened by the investors in the September quarter. While 1.3 million of these accounts have been opened in the September month only.

Indian Retail companies experienced their 11-year high in the month of September. The Retail Investors have boosted their shareholdings and are pumping their money into equities. The retail business rallied in the second quarter of the financial year as the COVID-19 unlock took place and economic activities led to a recovery in the overall economy.

As of September 30, the top 10 companies with the highest retail holding are Reliance Industries, Hindustan Unilever, HDFC Bank, Tata Consultancy Services, L&T, Infosys, Housing Development and Finance Corp., ITC, Asian Paints, and Bajaj Finance.

India’s first database firm covering the primary capital market of India has listed 1,605 companies that hit an 11-year high of 7.01% in the quarter ended in September. The growth was 0.27 % higher than that reported in the first quarter of FY21, while it is 0.55% higher than that reported 1 year ago for the same quarter. The industry reported very good growth despite COVID-19 lockdown and restrictions for business. While the retail holding hits Rs 10.58 lakh crore in the Q2 of FY21 which is Rs 1.43 lakh core more than Q1 of FY21 which reported Rs 9.15 retail holding.

According to the data given by SEBI, over 3.4 million new Demat accounts have been opened by the investors in the September quarter. While 1.3 million of these accounts have been opened in the September month only.

“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. The picture is very different if one looks only at Nifty companies. The retail share in these companies was 6.49% in Q2, declining marginally to 6.09% in case of top 100 companies listed on NSE in Q2,” said Pranav Haldea, managing director, Prime Database Group.

You might also like