Share movements in the third quarter: Retail investors jump ship in meager waters

Copyright © HT Digital Streams Limit all rights reserved. Markets -retail investors marked the steepest retreat among all investor categories. (AI-generated image) Summary In the first part of our series on shareholding data, we look at diverse interests through different categories of investors when headwinds hit hard in the March quarter. The March Quarter was an Achtbaan for Indian shares: A historic February Low Point gave way to a preliminary setback on March. However, against a backdrop of global uncertainty, investor action showed a divided home. Retail investors cut off their stake on March 31, which was the steepest withdrawal among all investor categories, unveiled a mint analysis of 3,315 BSE-listed firms. The shift reflects a growing caution to big profits in 2024, with profit discussion and repositioning powered by rising global and domestic wind. During the quarters in September and December, retail investors – individuals who own shares worth up to £ 2 Lakh – struggled their stake in 49.6% of the firms in which they had interests (1,645 businesses), while increasing their stake in nearly 43%. It was the most outspoken shift between investor classes. In contrast, foreign portfolios (FPIs) showed a balanced approach, increasing and lowering their interests by 38.6%. Mutual funds also showed remarkable stability, increasing their stake in 446 businesses, while keeping their interests unchanged in 76.1% of businesses. Read also | Q4-earnings watch: An unwelcome trend of profit turnaround for India Inc. “Retail investors have sharply cut in Q4 FY25, responding to increased market flights, macro concerns and broad sale,” says Harshal Dasani, business at Invasset PMS, a portfolio service. “Retail investors, more sensitive to short-term fluctuations, respond to falling portfolios, a slowdown in consumption, liquidity cross and persistent FPI selling.” Consequently, overall tendency reflected the total ownership pattern a combination of anxiety, which led to reduced exposure and abstinence, as many investors chose to stay on the sidelines. Retail investors, who gradually increased their stake of 13.1% in the fourth quarter of FY24 to 14.3% by the first quarter of FY25, stopped their buying tree in the March Quarter, with the first time in the year. In contrast, FPIs increased their interests from 12.1% to 12.3%, indicating a cautious return. Domestic mutual funds kept at 6.1%steady, reflecting their disciplined and long -term investment approach. Sectoral churn The refuge by retail investors was particularly pronounced in segments such as cement, chemicals and clothing. Individual investors pruned in 23 out of 33 cement businesses. In the Readymade clothing or clothing space, about 67% of firms saw a fall in retail ownership on a quarter-to-quarter basis, while more than 60% of the chemical sector firms fit their interests during the March quarter. Information technology and IT-activated services firms, with an imminent slowdown of the US, saw significant retail (46%) and FPI (44%) interest, while mutual funds showed resilience with only 10% knee exposure and 73.4% steady. Dasani said: “Muted results and poor outlook on technology. Also read | Big Four of Indian IT loses the market share; HCL Tech’s prospects offer little relief in the consumer sector; retail investors reduced the holdings in 48%of the 497 companies analyzed. have, which kept their positions unchanged in 69%. Positions left unchanged. Download the Mint News app to get daily market updates. More Topics #In Maps #Markets Premium Mint Specials