Shareholding and sector weights movements

9 May 2023 , 10:33 AM

Here are the key takeaways.

Promoters shed stake across Market Capitalization

In NSE 500 companies, Promoters shed stakes across MCap YoY (0.4ppt to 1.1ppt) and QoQ (0.2ppt to 0.5ppt) during FY23, with their holdings down 0.5ppt to 49.7% by year-end. Mid-caps saw the highest drop. In Q4, some prominent deals were Indigo, Samvardhana Motherson and HAL – even as promoters sold, FIIs and DMFs picked up similar stakes on the whole. Vedanta and Adani group sold down to bring down pledges.

FIIs maintain stake, but churn

FII stake in NSE 500 as on March 2023 stood at 18.9% — down very marginally YoY / QoQ due to decrease in large-cap stakes. The biggest reductions were in: Consumer Goods (white goods), Paints, Telecom, RIL and Banks. Significant additions (apart from GQG buying in Adani companies) were in Internet (PayTM, PB Fintech and Zomato) and Healthcare (Max Healthcare).

Increasing focus on SMID

At 21.2%, FII holdings in large caps are significantly higher than their own early double digits in SMID, as well as DMF holdings. FII SMID holdings rose YoY/QoQ. The gap between FIIs and DMFs (Domestic Mutual Funds) is much smaller in SMID. Unlike FIIs, DMFs seem to have similar average holdings of between 9-10% across MCap categories. QoQ, companies which both FIIs and DMFs invested in included Equitas, Coforge, Tamo, Delhivery, PayTM; and the aforementioned promoter selling deals (Motherson, HAL, Indigo). Surprisingly, from Bank of Baroda, DMFs had selling but FIIs increased stake.

Both FIIs and DMFs are OW on Pvt Banks, Utilities and Telecom versus respective indices; and UW on Technology, FMCG, Metals & Mining and Consumer Discretionary. FII OWs / UWs haven’t moved much over time, compared to those of DMFs.