Foreign institutional investors's ownership or FII holdings in the Nifty-500 companies fell to a 5-year low, declining 140 basis points quarter-on-quarter to 21% in the January to March quarter, according to note from Motilal Oswal. Compared year-on-year, it is a decline of 80 basis points.
FII ownership as a proportion of free float of the Nifty-500 declined 180 bps quarter on quarter to 42.3%, the report said. FIIs reduced ownership in 67% of Nifty-500 companies and 90% of Nifty-50 companies on a quarter-on-quarter basis.
The Nifty fell over 30% in the January to March quarter, hit by record outflows from FIIs amid the coronavirus crisis. On March 24, it hit a 52-week low of 7,511.
On the other hand, domestic institutional investors' or DII holdings in the Nifty-500 were up 20 basis points quarter on quarter to 14.8% in the March quarter, the report said. DII ownership as a proportion of free float increased 90 bps QoQ/260 bps YoY to 29.8%.
The report also said that promoters took advantage of the sharp correction post the COVID-19 pandemic and raised ownership. Thus, promoter holdings in the Nifty-500 companies increased 130 bps QoQ/150 bps YoY to 50.5% in March quarter, the report said.
Sequentially, on a quarter on quarter basis, FIIs have increased stake in telecom (190 bps), NBFCs (+110 bps), insurance (+50 bps), retail (+30 bps), utilities (+20 bps) and oil and gas (+10 bps), the report said.
In contrast, metals (-200 bps), autos (-150 bps), capital goods (-140 bps), private banks (-120 bps), healthcare (-110 bps) and cement (-110 bps) have seen reduction in FII stake.
In the Nifty-500, FIIs have the highest ownership in private banks (44.6%), followed by NBFCs (35.6%), telecom (21.7%), oil and gas (21.3%) and real estate (20.4%). DIIs have the highest ownership in capital goods (23.9%), metals (21.2%), private banks (20.3%), utilities (19.5%) and PSU banks (17.8%).
Sequentially, on a QoQ basis, DIIs increased stake in telecom (+220bp), utilities (+190bp), metals (+110 bps), NBFCs (+100 bps) and private banks (80 bps). Consumer was the only sector where DIIs reduced stake by 110 bps.