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Foreign investors have continued to reduce their stakes in major Indian companies, while domestic investors are steadily increasing their presence.
According to a report by Motilal Oswal Financial Services, out of the 50 companies in the Nifty 50 index, Foreign Institutional Investors (FIIs) reduced their stakes in almost 40 companies in June, whereas Domestic Institutional Investors (DIIs) increased their holdings in 44 companies. It stated "DIIs raised their stakes in 44 Nifty-50 companies, while FIIs reduced their stakes in 40 Nifty-50 companies". The report also mentioned that if we see on a quarter-on-quarter (QoQ) basis in the first quarter of current financial year, DIIs increased their holdings in 34 Nifty-50 companies, while FIIs reduced their stakes in 28. Overall, DII ownership reached an all-time high of 19.4 per cent in June 2025, rising 170 basis points (bp) YoY. FII ownership drops to 18.8 per cent, reflecting a decrease of 20 bp YoY. Promoters holdings, which have generally remained stable in the past, fell sharply to an all-time low of 49.3 per cent in June 2025, down 170 bp YoY and 20 bp QoQ. This decline as per the report was driven by a recovery in the primary markets during the first quarter of FY26, where high valuations and strong investor demand encouraged several promoters to sell their stakes. Retail holdings however, stayed stable at 12.4 per cent, with a marginal 10 bp increase YoY and no change in QoQ. Breaking down the numbers further, FII holdings in private companies in June fell 60 bp YoY but saw a slight QoQ rise of 10 bp to 20.2 per cent in June 2025. In public sector undertakings (PSUs), FII stakes fell 30 bp QoQ to 17.7 per cent but were higher by 120 bp on a YoY basis. Meanwhile, DIIs' stake in private companies climbed to an all-time high of 19.2 per cent, up 190 bp YoY. However, their holdings in PSUs slipped 20 bp QoQ to 18.6 per cent, though this was still up 120 bp YoY. The report also highlighted that the buoyancy in primary and secondary markets also encouraged more promoters in private companies to dilute their stakes, bringing promoter holdings in Nifty 500 companies to a record low of 46.9 per cent in June 2025. (ANI)
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