18 August 2020
BSE Sensex: 38,528
Motilal Oswal values your support in
the Asiamoney Brokers Poll 2020 for
India Research, Sales and Trading
request your ballot.
Ownership analysis – DII stake in Nifty-500 hits 5-year high
FII/DII ownership ratio unchanged at 1.4x; FIIs/DIIs raise stakes in Insurance
Benchmark Indices – Nifty-50/Nifty Midcap-100 – have recovered from their Mar’20
lows gaining 50%/52%. Further, YTD CY20, Nifty-50/Nifty Midcap-100 are down 6%/3%,
recovering almost all losses for CY20 in tandem with the rise in global equity markets.
Divergent sequential trends are being witnessed between FII and DII purchases. While
DIIs increased weights in Telecom/Technology sectors, FIIs reduced theirs QoQ. On the
hand, FIIs increased weights in Oil and Gas (O&G), Capital Goods and Retail, while DIIs
trimmed theirs QoQ.
Notably, in the Jun’20 quarter, DIIs/FIIs both saw inflows of USD1.7b/USD4.2b.
In this report, we take a deep dive into the ownership of various sectors/companies in
the Nifty-500 to see how it has changed during 1QFY21.
FII ownership in Nifty-500 remains near 5-year lows
Nifty-500 Institution ownership
Sectors which saw an increase in
FII QoQ chg (bp)
DII QoQ chg (bp)
FII holdings in the Nifty-500 remained near 5-year lows in 1QFY21 – it marginally
increased by 8bp QoQ, but declined 130bp YoY to 20.8%. DII holdings were also
marginally up in the Nifty-500 by 7bp QoQ/90bp YoY to 14.7%.
FIIs have reduced ownership in 68%/74% of Nifty-500/Nifty-50 companies QoQ,
while DIIs increased stake in 50%/68% of Nifty-500/Nifty-50 companies QoQ.
A mixed trend was witnessed in promoter stake holdings – it declined marginally
by 15bp QoQ, but was up 140bp YoY to 50.6%. Some large companies like HDFC
Life Insurance, Kotak Mahindra Bank, HDFC AMC, HUL, SBI Life Insurance, and
Bharti Airtel saw reduction in promoter stake due to stake sale, M&A and
capital raising exercise. Godrej Industries, Indian Bank, PNB, Mahindra CIE,
Adani Ports saw an increase in promoter stake QoQ.
As a proportion of free float of the Nifty-500, FII ownership stayed flattish QoQ
to 42.2%, while DII ownership rose marginally by 4bp QoQ/250bp YoY to 29.7%.
In 1QFY21, SIP inflows decreased to INR 79.2b in Jun’20 from the high witnessed
in Apr’20 (INR83.7b). It stood at INR78.3b in Jul’20. The FII-DII ownership ratio in
the Nifty-500 remained at 1.4x in 1QFY21 (unchanged from the previous
In the last one year, an increase in the FII-DII ratio was recorded in the Insurance
sector. Telecom, NBFC, Private Banks, Cement, Automobiles, Retail, Healthcare
and Technology were the main sectors to see a decline.
Sector holdings: Institutions record highest QoQ change in Insurance,
In the Nifty-500, FIIs have the highest ownership in Private Banks (44%),
followed by NBFCs (31.6%), O&G (22.4%), Telecom (20.6%) and Real Estate
(20.5%). DIIs have the highest ownership in Capital Goods (22.1%), Metals
(21.5%), Private Banks (20.2%), Utilities (18.8%) and Autos (16.3%).
Sequentially, FIIs have increased stake in Insurance (+170bp), Consumer
(+110bp), O&G (+110bp), Auto (+60bp), Healthcare (+40bp), Retail (+30bp),
Capital Goods (+20bp) and Real Estate (+10bp). In contrast, FIIs reduced stake in
Gautam Duggad – Research Analyst
Deven Mistry – Research Analyst
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.