FII-DII Ownership Ratio Declines To 1.4 Times From 1.6 Times YoY In 4QFY22

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).