Shifting paradigms: Retail shuffle meets FPI market drive, shows data

Retail investors churn, while FPI adjustments drive notable market shifts

Juxtaposing the change in the shareholding pattern of various stakeholders with stock price movement during a quarter reveals interesting trends.

The data shows that retail investors — those holding shares worth less than Rs 2 lakh in a single company — tend to churn their holdings the most, while changes by foreign portfolio investors (FPIs) have the highest impact on stock price performance.

According to data furnished by primeinfobase.com, retail investors increased stakes in 1,007 National Stock Exchange-listed companies during the three months ended December 31, 2023.

The average change in the stock price of these 1,007