FIIs have considerably ramped up their stakes in PSU corporations to 18.1% as of March 2025, marking a pointy rise of 140 foundation factors (bps) year-on-year (YoY) and 50 bps quarter-on-quarter (QoQ). The report underscores a hanging divergence in investor technique as DIIs additionally elevated their stake in PSU corporations to an all-time excessive of 18.8% in March 2025, representing a acquire of 120 bps YoY and 100 bps QoQ.
This surge in PSU holdings comes as FIIs concurrently slashed their publicity in non-public corporations to a historic low of 20.1%, down by 90 bps YoY and 30 bps QoQ. In the meantime, DII holdings in non-public corporations surged to 18.7%, growing by 180 bps YoY and 60 bps QoQ.
“Buoyant main and secondary markets additionally led to elevated stake dilution by Promoter teams of Personal corporations. This resulted in a dip of their total holdings within the Nifty-500 to an all-time low degree of 47.5% (-110 bps YoY) in March 2025,” Motilal Oswal famous.
The report additional added that Promoter holdings in PSU corporations additionally dropped to 54.1% (-270 bps YoY and -140 bps QoQ) from 56.8% in March 2024.
Additionally learn: Lodge shares sink as much as 7% after Pakistan’s drone assaults in IndiaWhen it comes to sectoral allocation, FIIs have been considerably chubby within the Banking, Monetary Providers, and Insurance coverage (BFSI) sector, with the sector accounting for 34.4% of their holdings within the Nifty-500 as of March 2025, a rise of 280 bps YoY and 300 bps QoQ.This was adopted by know-how, with a holding of 10% of FII allocations, and Telecom.
In the meantime, DIIs have been noticed to be chubby on Shopper, Oil &Fuel, and Metals, whereas remaining underweight on Personal Banks, NBFCs, and Actual Property, as per the brokerage report.
Throughout the Nifty-500, BFSI remained the biggest allocation for DIIs, comprising 27.3% of whole holdings, adopted by Shopper at 9.8% and Expertise at 9.3%.
(Disclaimer: Suggestions, solutions, views and opinions given by the specialists are their very own. These don’t characterize the views of The Financial Occasions)
