FIIs/DIIs Increase Holding in Insurance And PSU Banks

According to the India Strategy Report by Motilal Oswal Financial Services Limited (MOFSL), Equity markets witnessed a strong rally in CY21 with the Nifty-50 and NSE Midcap-100 up 28%/46% YTD'21. Within the NSE-500, FII and DII purchases showed divergent sequential trends.

FIIs raised their holdings in Consumer Durables, Capital Goods, Oil & Gas, and Telecom on a QoQ basis, whereas DIIs decreased their holdings in these sectors. DIIs, on the other hand, increased their holdings in Automobiles, Private Banks, and Healthcare, while FIIs decreased their holdings in these sectors on a QoQ basis. FIIs and DIIs posted inflows of USD0.4b and USD4.2b, respectively in 2QFY22.

In this report, MOFSL dive deep into FII/DII ownership of the various sectors/companies in the Nifty-500 to see how this changed in 2QFY22:-

FII holding in Nifty-500 remains unchanged QoQ

FII holding in the Nifty-500 remained unchanged QoQ but increased 40bp YoY to 21.6% in 2QFY22. DII holding in the Nifty-500 was down 20bp QoQ /80bp YoY to 13.8%. FIIs increased their ownership QoQ in 53%/40% of Nifty-500/Nifty-50 companies QoQ, while DIIs increased their stake QoQ in 48%/64% of Nifty-500/Nifty-50 companies. As a proportion of the free-float of the Nifty-500, FII ownership remained unchanged QoQ to 43.3%, while DII declined 40bp QoQ to 27.6%. Notably, FII ownership rose 60bpYoY, whereas DII ownership declined 180bp YoY.