DIIs’ stake in NSE companies up to 5.12% at end of June quarter

Mumbai: Domestic institutional investors’ (DIIs) ownership by percentage in the National Stock Exchange (NSE)-listed companies, rose to 5.12% at the end of June from 4.59% a year ago, but is lower than the record high of 6.42% seen in June 2009, markets tracker Prime Database pointed in a 30 July statement.

It is also lower than foreign institutional investors’ (FIIs) ownership in these shares, which stands at 6.36% at the end of June quarter.

The analysis is based on shareholding patterns filed by 1,447 of the total 1,483 companies listed at NSE for the quarter ended June, that had declared the same by 30 July.

“DIIs comprise of MFs (mutual funds) and insurance companies. So, even as MFs are receiving huge inflows off late, which shows in the rise in DII’s holdings in recent times, insurance companies’ interest in Indian shares not been very exciting,” said Pranav Haldea, managing director, Prime Database, said in a phone interview.

Significantly, given the buoyant markets and good-quality portfolio, by value, the DII holdings in NSE-listed companies was at the highest level in 6 years at ₹ 10.48 trillion, up by 15% from a year ago, pointed Haldea.

The companies with highest increase in DII holding in the year to June 2015 were Balmer Lawrie & Co. Ltd, which saw its holding rise by 62.39% to 73.17%, followed by IVRCL Ltd, which saw DIIs hiking stake by 35.15% to 36.92%. Following next were PSL Ltd and ITD Cementation India Ltd which saw hikes of 29.7% and 21.9%, respectively.

On an overall basis, DII holding went up in 529 companies listed on NSE with the average stock price return of these companies in the year to June being 32%. On the other hand, DII holding went down in 454 companies listed at NSE. The average stock price return of these companies in the same period was 12%.

In the same period, Nifty posted returns of around 10%.

State-owned banks dominated the companies where insurance companies hiked their stakes the most in the period.

Bank of Maharashtra, Canara Bank, Uco Bank and United Bank of India saw insurance companies raising their stake in them by 8.62%, 8.59%, 7.93% and 7.83%, respectively.