India’s retail investors doubled down on equities during the June quarter, ramping up purchases across key sectors including metals, technology, automobiles, banking and energy. Despite lingering geopolitical tensions and persistent foreign outflows, the market staged a resilient recovery, pushing the 30-scrip blue chip index up 4.5% during the quarter.
A Mint analysis of shareholding data for 4,601 BSE-listed companies showed that retail ownership sequentially increased in 1,970 firms, or 43% of the sample, during the first quarter of FY27. That was an improvement from the March quarter, when 35% of the companies analyzed recorded an increase in retail participation.
However, retail ownership declined in 2,183 companies, or 47% of the sample, while another 448 firms (10%) recorded no material change. In the preceding quarter, retail ownership had declined in around 57% of companies and remained unchanged in about 8% quarter-on-quarter.
Individuals holding nominal share capital of up to ₹2 lakh are categorized as retail investors.
Vedanta, Wipro and Bajaj Auto emerged as the biggest retail favourites, together adding more than 1.22 million individual shareholders during the first quarter of FY27. HDFC Bank, Reliance Industries and Infosys also recorded sizable additions.
This surge in individual participation drove strong net flows for the quarter. Retail investors bought equities worth a net ₹39,287 crore during the three months ended June, according to NSE data. This was their highest quarterly investment since the December quarter of 2024.
While the shift reflects genuine retail participation, it does not necessarily signal a broad resurgence in risk appetite, experts said. “This is a real re-entry, not merely an increase in shareholder accounts,” said Tanvi Kanchan, associate director at Anand Rathi Shares and Stock Brokers. However, she added that retail buying remains modest compared to domestic institutional and systematic investment plan flows, which absorbed heavy foreign selling and drove most of the market recovery.
IT attracts bargain hunters
Wipro recorded the second-largest increase, adding 407,894 retail shareholders—its highest quarterly addition since June 2022. Its retail investor base increased to 2.9 million from 2.5 million at the end of March. The pace of additions accelerated from 157,427 in the March quarter, even as the stock remained under pressure. Wipro shares declined 11% during April-June and are down more than 30% this year.
Infosys meanwhile added 204,064 retail shareholders, its highest quarterly increase since June 2023. Its retail shareholder count rose to 2.8 million from 2.6 million. The company had added 113,175 investors in the March quarter after losing 86,734 in the preceding three months. Infosys shares declined 22% during Q1FY27 and are down more than 28% so far in 2026.
The accumulation suggests that investors were seeking value in a beaten-down sector rather than responding to a clear improvement in earnings. Although the Nifty IT index has rebounded sharply from its July low, the recovery in actual business performance remains tentative.
“Retail investors accumulating Infosys and Wipro appear to be betting on a valuation recovery rather than responding to strong earnings,” Kanchan said. These stocks could remain vulnerable if the anticipated recovery in technology spending fails to materialize, she added.
Safety in large caps
Bajaj Auto attracted 327,010 additional retail shareholders, its strongest quarterly increase since the March quarter of FY19. Its retail investor base more than doubled to 620,935 from 293,925 in March. The company had lost 19,859 retail shareholders in the preceding quarter. Shares of the two-wheeler maker gained 9% during Q1FY27 and are up about 21% this year.
HDFC Bank added 298,036 retail shareholders, taking its total to about 4.4 million from 4.1 million. While the pace moderated from the 570,540 investors added in the March quarter, the lender remained among the most accumulated stocks for the second consecutive quarter.
Reliance Industries added 219,986 retail shareholders after attracting 204,923 investors during January-March, marking a second consecutive quarter of strong accumulation. Its shares, however, declined 5.5% during the June quarter and are down 18.7% so far this year.
Kanchan described HDFC Bank and Reliance as a “safety in scale” trade, reflecting investors’ preference for large, established companies following the market correction. Vedanta and Bajaj Auto, meanwhile, represented a momentum-driven bet supported by stronger headline earnings.
Rathi said retail investors were rotating into beaten-down banking and technology stocks because their valuations and risk-reward equations appeared more attractive. However, inexpensive valuations can turn into a “value trap” if the expected earnings recovery fails to materialize, he cautioned.