Promoter Holdings Remain Strong
A recent analysis of ownership patterns in NSE-listed companies reveals that promoter holdings have remained stable over the years. From 2017 to 2024, promoter holdings have largely stayed between 50% and 51%.
As of 2024, it stands at 51.5%, which is slightly above the average of the past eight years. This indicates that promoters continue to have strong confidence in their companies.
Domestic Investors on the Rise
The share of domestic institutional investors (DIIs) has increased over the years. In 2017, DIIs accounted for 11.6% of ownership, and this has risen to 14.9% in 2024—a 3.3% increase over time. This steady growth demonstrates that Indian institutions are becoming more active and confident in the stock market.
Foreign Investors at Record Lows
Conversely, the share of foreign institutional investors (FIIs or FPIs) has declined. Their ownership was at 22.2% just before the COVID-19 pandemic but has dropped to 17.7% in 2024, the lowest level in eight years. This marks a significant shift in the market. In 2020, there was a considerable gap between FIIs and DIIs, but that gap has now narrowed, indicating a major change in who owns Indian stocks.
Retail Investors Hold Steady
Retail or individual investors have demonstrated consistent participation. Their ownership has remained close to 9% over the past few years, increasing from 8.7% in 2017 to 9.6% in 2024. While this change is modest, it still signifies that retail investors are maintaining their presence in the market.
Major Shift in Market Dynamics
The most noteworthy change is the transfer of ownership from foreign to domestic investors. There is now a 5% swing in favor of DIIs. With FIIs at an eight-year low and DIIs at a high, this balance strengthens the market. Even if the market experiences a correction, domestic investors can provide substantial support.
A Strong Setup for the Future
With markets still near all-time highs and FII ownership at a decade low, the current situation creates a robust setup. If markets decline, FIIs may return with new buying, providing additional support. This shift in ownership can help the market remain stable even during challenging periods.
What are your thoughts on this shift in market ownership? Do you think FIIs will return soon? Let us know in the comments below! If you found this blog useful, don’t forget to SHARE it with your friends!
WeekendInvesting launches – The Momentum Podcast
In this episode of the Momentum Podcast by Weekend Investing, Alok Jain sits down with Mr. Thomas, a passionate retail investor, to uncover his remarkable journey—from exiting the markets at the worst possible moment during the 2020 crash to finding clarity and consistency through momentum investing.
Topics Covered:
✅How a train journey sparked his interest in the stock market
✅Emotional investing mistakes & lessons from the COVID crash
✅Why he shifted from value to momentum-based strategies
✅The Weekend Investing system that gave him peace of mind
✅How he balances aggressive bets with long-term wealth-building
Whether you’re just starting out or navigating your own investing style, this episode is packed with relatable stories and actionable insights.
