Among the weak global indicators, the holding of foreign institutional investors (FIIs) in the Nifty-500 fell by 40 basis points (QoQ) to 40.3 basis points (bps) and from 210 bps (YoY) per year to 20.3. In the March quarter of the 2021-22 (Q4FY22) fiscal year, Motilal Oswal reported.
In contrast, the holding of domestic institutional investors (DIIs) Nifty-500, however, increased by 70 bps QoQ and 30 bps YoY to 14.5 over the same period, the report said.
The report further states that FIIs have reduced their holdings in Nifty-500 / Nifty-50 companies QoQ by 60/72 per cent, while DII has increased their shares in former and subsequent companies by 58/72 per cent, respectively.
“There has been a mixed trend in promoter holding. Holding unchanged QoQ, but 60 bps YoY increased 50 percent ৷ The decline in QoQ was due to the share sale and capital growth practices of partners of Restaurant Brands Asia, Max Healthcare, Coforge, Equitas Small Finance Bank, Punawala Fincorp and JK Cement, ”the domestic brokerage report said.
In contrast, Sterling & Wilson has witnessed QoQ growth in partnerships with renewable energy, CG Power & Industrial Solutions, Rice Services, Vodafone Idea, and L&T Finance Holdings promoters, it added.
As for the Nifty-500’s free-float ratio, FII ownership fell 90 bps QoQ to 40.5 percent, while DII increased 130 bps QoQ to 29 percent. Significantly, FII ownership declined by 370 bp per year, while DII ownership increased by 90 bp per year, Motilal Oswal also noted.
The FII-DII ownership ratio in the Nifty-500 fell from 1.4x in 4QFY22 to 1.6x in 4QFY21, the report said.
Over the past year, the FII-DII ratio has grown in utilities, metals, consumer durables and capital goods, but insurance, real estate, NBFCs, private banks, retail, utomobiles, healthcare, cement, telecom and oil and gas.