MF share in stock holding pattern of NSE-listed firms rises to 7.36% in Q2

Prime database figures show that mutual fund ownership of NSE-listed firms rose nearly 15% Q0Q to Rs 18.75 trillion as on Sept 30

Sharp inflows into equity mutual funds (MFs) have led to an increase in holdings of companies listed on the National Stock Exchange (NSE) to 7.36 per cent as on September 30, 2021, from 7.25 per cent as on June 30, 2021.

Prime Database figures show that MF ownership of these firms rose 14.82 per cent to an all-time high of Rs 18.75 trillion as on September 30, from Rs 16.33 trillion on June 30.

According to Pranav Haldea, managing director at PRIME Database Group, there has been an increase in holdings of listed companies in NSE after five quarters of consecutive decline.

“In terms of ownership by number of shares (average of ‘MF Holding as a percentage of total share capital’ across all NSE listed companies), mutual funds ownership went up marginally to 3.34 per cent as on September 30, 2021 from 3.31 per cent on June 30, 2021,” said the release.

Last few months have seen equity funds getting inflows on the back of rising equity markets and strong performance of equity schemes. In the second quarter of the current financial year, equity funds have seen net inflows of around Rs 39,927 crore, shows the data from Association of Mutual Funds in India (Amfi).

Top companies with highest mutual fund holdings in value terms as on quarter ending September 30 2021, were HDFC Bank, ICICI Bank, Infosys, Reliance Industries and State Bank of India.  

On an overall basis, in the last quarter, holdings of mutual funds went up in 300 companies. The average stock price of these companies in the same period increased by 12.06 per cent. On the other hand, holdings of mutual funds went down in 387 companies listed on NSE. The average stock price of these companies in the same period increased by a slightly lower 10.62 per cent.

Even the holding of foreign portfolio investors (FPIs) in companies listed on NSE crossed Rs 50 trillion for the first time ever to reach an all-time high of Rs 54.69 trillion as on September 30, 2021.

“This was an increase of 12.03 per cent from Rs 48.82 trillion as on June 30, 2021 and primarily driven by an extraordinarily buoyant secondary market during the quarter (Sensex and Nifty rose by 12.66 and 12.07 per cent respectively during this period),” said Haldea.

Net inflows from FPIs stood at a measly Rs 3,928 crore during the quarter resulting in FPIs share declining to 21.47 per cent as on September 30, 2021, from 21.66 per cent as on June 30, 2021.