- The share of retail investors reached a record high of 7.18 per cent in the June quarter.
- This figure was 6.96 percent in the March quarter.
- These are the investors who invest up to Rs 2 lakh in NSE listed companies.
- Two important reasons for this are the boom in the stock market and the arrival of a large number of new IPOs.
Retail Investor in Share MarketThe ownership position of retail investors in companies listed on the National Stock Exchange (NSE) rose to an all-time high in the June quarter. There are two important reasons for this Share Market The boom and the arrival of new IPOs in large numbers. This is stated in a report. According to a report by PrimeInfobase.com, a Prime Database Group initiative, the share of retail investors investing up to Rs 2 lakh in NSE listed companies rose to a record high of 7.18 per cent in the June quarter, from 6.96 per cent in the March quarter.
In terms of value, the holding of retail investors in NSE listed companies increased to Rs 16.18 lakh crore in the quarter under review from Rs 13.94 lakh crore as on March 2021. According to the report, the common investor is now preferring to invest directly in the stock market instead of investing in mutual funds. During this period, both the BSE Sensex and NSE Nifty gained 6.01 per cent and 7.02 per cent, respectively.
“Retail savings have come into the capital market with a boom in the stock markets and a large number of new issuances (Initial Public Offerings-IPOs),” said Pranav Haldia, managing director, Prime Database Group, on the main board of NSE. This is based on the shareholding information furnished by 1,666 companies out of a total of 1,699 listed companies for the quarter ended June 30, 2021. As of July 31, 33 companies were required to disclose their shareholding pattern.
However, the holding of domestic mutual fund companies listed on the NSE declined marginally to 7.25 per cent in June 2021 from 7.26 per cent in March 2021. According to Haldia, this is the fifth consecutive quarter when the share of mutual funds has declined. Earlier it had increased for 24 consecutive quarters. It increased from 2.80 percent in March 2014 to 7.96 percent in March 2020. He said that this trend indicates that individual investors are now preferring to invest directly in the stock market rather than mutual funds.
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