According to the India Strategy report of Motilal Oswal Financial Services Limited (MOFSL), Nifty ended FY22 with 19% YoY gain, marking another year of strong returns despite the multitude of challenges. Within the NSE-500, FII and DII purchases depicted divergent sequential trends. On a QoQ basis, DIIs increased their holdings in all sectors except Capital Goods. Conversely, FIIs increased their holdings in only five sectors - Metals, Telecom, Utilities, PSU Banks and Chemicals.
On the other hand, the report has noted that FII-DII ownership ratio in the Nifty-500 declined to 1.4x in 4QFY22 (from 1.6x in 4QFY21). Over the last one year, the FII-DII ratio has increased in Utilities, Metals, Consumer Durables, and Capital Goods, but has decreased in Insurance, Real Estate, NBFCs, Private Banks, Retail, Automobiles, Healthcare, Cement, Telecom, and Oil & Gas.
In the Nifty-500, according to the India Strategy report, FIIs have the highest ownership in Private Banks (45.2%), followed by NBFCs (27.4%), Oil & Gas (22.6%), Insurance (20.5%), and Technology (19.2%), while (ii) DIIs have the highest ownership in Private Banks (24.1%), Capital Goods (20.4%), PSU Banks (18.7%), Consumer Durables (17.9%), and Automobiles (16.9%).
The Top 5 companies that contributed 34% to the holding value were Reliance Industries (USD62.9b), HDFC Bank (USD51.5b), HDFC (USD39.9b), ICICI Bank (USD36.8b), and Infosys (USD35.9b).