The institutional ownership of BSE500 firms reached an all-time high of 34.7% as on June 30, and both promoter stake and retail ownership dropped to all-time lows, strategists at Credit Suisse wrote in a report.
The share of foreign institutional investors (FIIs) in these companies increased q-o-q and y-o-y to 20.9% against a peak of 21.4%, while the share of domestic institutional investors (DIIs) rose to an all-time high level of 13.9% as on June 30, they said in the report on Tuesday. This means the jump of MFs to 7.7% offset a slight decline in insurance to 4.8%, and banks to 1.4%, they said.
The government stake in BSE500 firms has stabilised, mainly because of capital infusion worth about Rs 1.1 lakh crore in public-sector banks in FY19, they said.
The strategists said the government shareholding in BSE500 dropped, while retail holders were hurt by adverse price performance. FII holding in Nifty increased to 26% and continued to diverge from non-Nifty firms. As a result, 75% of FII holdings are now in Nifty, the highest since June 2005, they pointed out.
Markets stem slide ahead of Fed rate decision; bank, auto stocks make big gains
Benchmark indices shook off their recent spell of weakness to close modestly higher on Wednesday, propelled by banking and auto stocks, ahead of the US Federal Reserve’s interest rate decision.
After a choppy session, the 30-share BSE Sensex settled 83.88 points or 0.22% higher at 37,481.12. The broader NSE Nifty ended 32.60 points or 0.29%, up at 11,118.00.
Market sentiment improved somewhat on expectations that the US Fed will reduce rates in its policy meeting for the first time in a decade, traders said.
Yes Bank was the biggest gainer in the Sensex pack, soaring 6.04%, followed by IndusInd Bank, Tata Steel, Hero MotoCorp, Sun Pharma, Bajaj Auto, Power Grid, Tata Motors, SBI and Kotak Bank that gained up to 5.32%. On the other hand, Axis Bank emerged as the biggest loser, dropping 4.55%, followed by Bharti Airtel, Reliance, NTPC, Maruti, Tech Mahindra, ONGC, HDFC and HDFC Bank.
Market reversed after testing the psychological level of the 11,000-mark supported by short covering in banks and auto after recent days of fall and prospects of dovish Fed policy.
-with PTI inputs