Promoter Holdings Hit Historic Low in Nifty-500, Retail Investors Hold Steady
Promoter holdings in Nifty-500 companies fell to 49.5% by March 2025, the lowest ever. High primary market valuations led promoters to reduce stakes. Promoters preferred PSU banks and utilities, while retail investors held stable at 12.4%, favoring BFSI and capital goods sectors.
- Country:
- India
Promoter holdings in Nifty-500 firms have reached an unprecedented low of 49.5% as of March 2025, according to a Motilal Oswal Financial Services report. The drop signifies a notable decrease of 140 basis points year-on-year and a 30bp decline quarter-on-quarter.
This decline in promoter stakes is attributed to a thriving primary market in 2024, as high valuations and robust investor demand prompted many promoters to offload their holdings, capitalizing on favorable market conditions.
There is a notable sectoral shift among promoters, who increased stakes in PSU Banks, Insurance, NBFCs - Lending, Utilities, and Metals, while reducing their exposure in Private Banks and NBFCs - Non Lending. Retail investors, meanwhile, maintained stable stakes, with a preference for the BFSI sector, accounting for 23.8% of their investments in the Nifty-500 index.
(With inputs from agencies.)
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