Promoter ownership in Nifty 50 companies fell to 40 per cent in the September quarter. This drop hit a 23-year low, even as holdings across the broader listed market rose to 50.4 per cent. The NSE said, “The increase in promoter ownership was driven by higher holdings of private Indian promoters.”
Promoter ownership in Nifty 50 companies fell to 40 per cent in the September quarter, returning to a 23-year low touched a year earlier, even as promoter holdings across the broader listed market rose to a seven-quarter high of 50.4 per cent.
Promoter shareholding in Nifty 50 companies declined by 37 basis points from June, falling for the second consecutive quarter, according to the National Stock Exchange’s (NSE) latest India Inc ownership tracker report. In value terms, their holdings dropped 5.6 per cent to ₹73.2 lakh crore, compared with a 4.7 per cent decline in the index's overall market capitalisation.
The decline was seen across all three promoter categories, including private Indian, government and foreign promoters.
Holdings value
Private Indian promoter ownership fell for the third consecutive quarter, declining by 23 basis points to a 29-quarter low of 26.9 per cent. The value of their holdings dropped 2.8 per cent to ₹50.6 lakh crore.
Government ownership in Nifty 50 companies, including promoter and non-promoter holdings, declined by six basis points to 7.6 per cent, primarily due to the government's stake sale in Life Insurance Corporation of India (LIC). Excluding LIC, government ownership actually increased by 23 basis points to 5.3 per cent. Foreign promoter ownership also declined by nine basis points to 5.7 per cent.
Total promoter ownership in NSE-listed companies rose for the third consecutive quarter, increasing by 20 basis points to a seven-quarter high of 50.4 per cent. “The increase in promoter ownership was driven by higher holdings of private Indian and foreign promoters, partly offset by a further decline in government promoter ownership,” NSE said.
Private Indian promoter ownership across NSE-listed companies rose by 58 basis points to an eight-quarter high of 32.7 per cent. Within this category, individual promoter ownership increased by 67 basis points to a 69-quarter high of 7.9 per cent, while non-individual promoter holdings declined to a 37-quarter low of 24.8 per cent.
The value of individual promoter holdings rose 3.9 per cent to a record ₹36.4 lakh crore despite the market correction. The NSE said this suggests increased stake accumulation by individual promoters, potentially taking advantage of the correction in market valuations.
Meanwhile, government ownership across NSE-listed companies fell by 62 basis points to a 13-quarter low of 9.1 per cent. The decline reflected the relatively weaker performance of large public sector companies and the government's stake sale in LIC. The Nifty CPSE index fell nearly 7 per cent during the quarter, compared with a 3.6 per cent decline in the Nifty Total Market index.