Holdings of high networth individuals (HNIs) in 479 companies in the Nifty 500 index climbed to at least 10-quarter high in April-June period. Market data showed HNIs ownership in the companies under review for NSE 500 index was at 3.17% in June quarter compared to 3.09% in previous three months while it was 2.98% in same period last year. By value, HNI holdings in these companies was at 1.69% or ₹2.20 lakh crore in June quarter from 1.68% or ₹1.76 lakh crore in previous quarter.
For 1594 firms among all listed companies on the NSE, HNIs increased to 1.84% by end of June from 1.78% in March. In absolute value terms, HNI holding was at ₹2.50 lakh crore in April-June, an increase of 28.12% over the last quarter. HNI ownership by value percentage went up to 3.73% in the quarter ending June from 3.61% quarter-on-quarter.
“Equity markets sharply declined due to covid-related sell-off which resulted in valuations turning attractive in late March. As valuations become attractive post steep corrections, investors with strong risk appetite favoured buying stocks in following months. Many investors made re-allocation in their portfolio by re-balancing equities,” said an analyst. In three months ended March, benchmark indices had crashed around 29% with an over 20% slump in a single day in the month while the markets gained nearly 19% in April-June period.
On an overall basis, HNI holding went up in 669 companies listed on NSE in the last one quarter. The average stock price of these companies in the same period increased by 61.79% while HNI holding fell in 691 companies, according to primeinfobase data.
Companies which saw highest increase in HNI holdings in percentage terms in last one quarter were Euro Ceramics, Reliance Naval Engineering Ltd, Sundaram Multi Pap Ltd. HNI holdings in these companies stand at 29-61% in June quarter. Even beaten down stocks like Reliance Capital and Videocon Industries Ltd saw increase in HNI holdings of 23.91% and 20.28% respectively by end of June.
In value terms, companies which saw the highest increase in HNI holdings in value terms in June quarter wereReliance Industries, Bajaj Auto, Vodafone Idea, Cipla, Alok Industries and Infosys.
Among large individual investors, Radhakishan Damani’s cumulative holding has increased by 6.14% to ₹1,16,798.88 crore in June quarter. Rakesh Jhunjhunwala’s cumulative holding as on June was ₹10,145.19 crore, registering an increase of 21.09% in one quarter.
“After the rally from March 20 lows, the Nifty at 21 times price to earnings (PE) is now trading at a premium to its long-period average; however, it is not looking as attractive as it did in March,” said analysts at Motilal Oswal Financial Services Ltd. The brokerage firm said that any further upside of the markets from here would now rest on the inter-play of the health crisis and speed of demand recovery while the frequent localized lockdowns and rising covid cases can dent the revival in rural demand recovery.