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09 May, 2025
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Business News | Promoter Holdings in Nifty-500 Drop to Record Low of 49.5% in March 2025; Retail Holdings Remain Stable: Motilal Oswal
@Source: latestly.com
New Delhi [India], May 9 (ANI): Promoter holdings in Nifty-500 companies dropped to an all-time low of 49.5 per cent as of March 2025, according to a report by Motilal Oswal Financial Services. The report also highlighted that the decline marked a significant drop of 140 basis points (bp) year-on-year (YoY) and 30bp quarter-on-quarter (QoQ). Meanwhile, retail investor holdings in these companies remained broadly stable over the past three years, hovering in the 12-13 per cent range. Also Read | India Shoots Down Pakistan Air Force's F-16 Fighter Jet, 2 JF-17 Aircraft After Pakistani Forces Attempt To Target Multiple Locations in Jammu and Punjab. It said, "Promoter holdings, which have historically remained range-bound, also declined meaningfully by 140bp YoY (down 30bp QoQ) to an all-time low of 49.5 per cent in March 25." The fall in promoter stakes is being attributed to a buoyant primary market in 2024. High valuations and strong investor interest encouraged several promoters to reduce their holdings by cashing in on the positive market sentiment. Also Read | Stocks To Buy or Sell Today, May 09, 2025: RBL Bank, Ultratech Cement, Jio Financial Among Shares That May Remain in Focus on Friday. Promoter activity suggests a shift in sectoral preferences, with higher stakes in PSU Banks, Insurance, NBFCs - Lending, Utilities, and Metals. On the other hand, promoters were underweight on Private Banks and NBFCs - Non Lending. Interestingly, the report mentioned that the promoter holdings rose in sectors like Capital Goods, Logistics, Media, Infrastructure, and Utilities on a YoY basis. However, their stakes declined in sectors such as NBFC - Non Lending, Consumer Durables, EMS (Electronic Manufacturing Services), Real Estate, and PSU Banks. The report also highlighted that Retail investors' interest in the Nifty-500 universe remained consistent. As of March 2025, retail holdings stood at 12.4 per cent, a 10bp increase YoY, but down 40bp on a QoQ basis. The stability in retail participation comes despite a volatile market environment and changing promoter strategies. Retail investors showed a clear preference for the BFSI (Banking, Financial Services and Insurance) sector, which made up 23.8 per cent of their total holdings in the Nifty-500. Other key sectors with high retail interest included Capital Goods (10.3 per cent), Consumer (8.3 per cent), Technology (7.4 per cent), and Automobiles (7.1 per cent). Together, these top five sectors accounted for 57 per cent of total retail holdings. The report highlights the growing divergence in sectoral preferences among promoters, retail investors, and institutional players, offering insights into changing market dynamics and investor behaviour. (ANI) (This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)
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