Friday, December 1st, 2023

Small investors scared of stock market reaching record high, withdrawing their money every day


Photo:FILE Share Market

indian stock market Trading near record high. Many investors have become silver as the market reached a record high. He has also made tremendous earnings in recent times. Small investors have also got the benefit of this. They have also got excellent returns on their investments. However, along with this, he has started to fear a big fall in the market. Due to this, he is withdrawing his money fast. This information has been received from the report of Prime Database. As per the report, the share of high net worth individual (HNI) investors in companies listed on NSE declined to 25.50 per cent by June 30, 2023, after the share of domestic institutional investors (DIIs) increased for 6 consecutive quarters along with small ones.

Small investors are booking profits

According to Pranav Haldia, Managing Director, Prime Database Group, this was due to profit-booking by LIC, mutual funds as well as retail and HNI investors as the market hit an all-time high. Net inflows from DIIs stood at only Rs 3,368 crore during the quarter.

Foreign investors increased their stake

Meanwhile, Rs 1,02,617 crore was infused from foreign institutional investors (FIIs) during the quarter, resulting in the FII share increasing for the fourth consecutive quarter to 18.94 per cent as on June 30, 2023 (up 7 bps) as on March 31, 2023 18.87 percent). While FIIs invested heavily in the financial services and auto sectors to the tune of Rs 44,065 crore and Rs 16,818 crore, respectively, they pulled out Rs 9,376 crore from the information technology sector during the quarter. Meanwhile, the total shareholding of institutional investors, FIIs and DIIs declined to 35.01 per cent in the quarter ended June 30, 2023, from 35.24 in the quarter ended March 31, 2023.

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Widening gap between FII and DII holding

The gap between FII and DII holding widened in this quarter. DII holding is now 15.19 per cent less than FII holding (DII holding was 13.29 per cent less than FII holding as on March 31, 2023). The biggest difference between FII and DII holding was in the quarter ended March 31, 2015, when DII holding was 49.82 per cent less than FII holding. The FII to DII ownership ratio also increased to 1.18 as on June 30, 2023 from 1.15 as on March 31, 2023.

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