Home / News / India /  Who impacts Indian market? Zerodha's co-founder Nikhil Kamath sheds some light
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A data revealed that retail investors have a far lesser impact on the Indian stock market in the country. Zerodha's co-founder Nikhil Kamath on Wednesday stated that the impact of retail investors is smaller than most think. He cited a BQ Community research note, which revealed that Indian-listed firms are majorly owned by private promoters and foreign investors. Retail investors' ownership is also lesser than mutual funds, but higher than government and insurers.

Through his Twitter handler, Nikhil said, "Retail investors in India have a smaller impact on markets than most think, just 7 percent."

The BQ Community research showed that private promoters owned around 45.13% of Indian listed companies, followed by foreign investors (FIIs) whose ownership is around 20.15% currently.

This makes FIIs the largest non-promoter shareholders in the Indian market.

On the other hand, mutual funds owned around 7.75%. Retail investors, meanwhile, hold around 7.42% of the domestic market.

The data also revealed that retail holding in companies listed on the NSE reached an all-time high of 19.16 lakh crore on December 31, 2021.

Among others would be -- the government holding around 5.48%, insurers around 4.99%, LIC at 3.83% holding, others at 3.16%, and finally high net-worth investors with 2.09% holding in the Indian market.

As per StockEdge data, FIIs are broadly net sellers year-to-date in the Indian market with an outflow of 267,324.02 crore. In the year 2021, the outflow was not even half of the current selloff and stood at 92,729.52 crore. Despite the Coronavirus pandemic at its peak, FIIs were net buyers in 2020 with an inflow of 64,379 crore in the Indian market.

On the other hand, so far in 2022, domestic investors are the biggest buyer in the Indian market to the tune of 257,966.22 crore. Last year, the inflow was around 94,574.91 crore. While FIIs were net buyers in 2020, the DIIs were net sellers with an outflow of 36,152.24 crore in domestic equities.

Earlier, on December 1, 2022, Sensex registered a new lifetime high of 63,583.07, while the Nifty 50 also garnered a fresh historical high of 18,871.95.

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