The shrinking share of domestic investors
Note that the proportion of FII holdings is currently much higher than what it was even at the height of the bull run in 2006 and 2007
The chart from a Deutsche Bank AG report, Are we at the cusp of a turnaround in financial savings?, shows how the proportion of shareholding by individuals and mutual funds in the BSE-500 stocks has been steadily falling, while that of foreign institutional investors (FII) has been going up.
Note that the proportion of FII holdings is currently much higher than what it was even at the height of the bull run in 2006 and 2007.
With gold losing its lustre and the equity markets rallying, it is very likely that local investors will soon be attracted back to the markets, adding steam to the rally.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!