A recent analysis by DAM Capital reveals a significant change in the ownership dynamics of Indian-listed companies. Domestic institutional investors (DIIs) now hold a record high of 16.9% of Nifty 500 companies, while foreign portfolio investor (FPI) ownership has declined to 18.8%, its lowest level in nearly 12 years.
This shift is driven by strong participation from retail investors through mutual funds. Since March 2021, FPI free float ownership has decreased each quarter, with domestic investors now controlling nearly 53% of the float.
DIIs have increased their stakes across large, mid, and small-cap segments, with the largest increase seen in largecaps (Nifty-50) at approximately 60 bps. Retail investors hold an ownership stake of 8.7%, with a total holding value of USD 392 billion.
The analysis also highlights sector trends, with FPIs and DIIs increasing their stakes in capital goods, consumer services, power, and real estate for four consecutive quarters. In contrast, both FPIs and DIIs have decreased their stakes in FMCG for four straight quarters.
This shift in ownership dynamics reflects the growing influence of domestic investors in the Indian market, with retail investors playing an increasingly significant role.
