NewKerala.com

Promoters Sell Stakes at Peak Valuations as Nifty 500 Ownership Hits Record Low

Promoter ownership in Nifty 500 companies has fallen to a historic low of 48.8% as high valuations prompted stake sales. Domestic institutional investors have increased their holdings to a record 20.6%, while foreign institutional ownership has dipped slightly. The shift shows divergent trends, with DIIs raising stakes in most sectors and FIIs reducing holdings in many. This changing ownership pattern reflects dynamic market conditions and strong primary market activity.

Key Points: Promoter Holdings in Nifty 500 Hit All-Time Low: Report

  • Promoter stake at record low 48.8%
  • DII ownership hits all-time high 20.6%
  • FII ownership dips to 18.4%
  • Retail holdings also decline to 12.1%
2 min read

Promoters continuously selling stakes at high valuations, Nifty 500 ownership slips to historic low: Motilal Oswal

Motilal Oswal report shows promoter stakes at historic low of 48.8% as DIIs buy. Analysis of shifting ownership in Indian markets.

"Promoter holdings... continued to decline materially to an all-time low of 48.8 per cent - Motilal Oswal Report"

Mumbai, February 11

Promoters of companies listed in the Indian stock markets are steadily reducing their stakes, as high valuations and strong investor appetite provided an opportunity to liquidate holdings at elevated levels, according to a report by Motilal Oswal Financial Services.

The report highlighted that promoter holding in the Nifty 500 declined to an all-time low of 48.8 per cent in December 2025.

It stated "Promoter holdings, which have historically remained range-bound, continued to decline materially to an all-time low of 48.8 per cent (-90bp YoY, -50bp QoQ) in Dec'25".

As per the report, the sharp dip was driven by a recovery in the primary market over the last three quarters, where high valuations and strong investor appetite created an attractive opportunity for several promoters to pare their stakes.

At the same time, domestic institutional investors (DIIs) increased their ownership. Over the past one year, DII ownership rose 210 basis points YoY and 60 basis points QoQ to an all-time high of 20.6 per cent in December 2025.

In contrast, foreign institutional investor (FII) ownership dipped 50 basis points YoY, although it rose 10 basis points sequentially, to 18.4 per cent in December 2025, compared to 18.9 per cent in December 2024.

Retail holdings also saw a decline, slipping to 12.1 per cent in December 2025, down 60 basis points YoY and 20 basis points QoQ.

Within the Nifty-500 universe, FIIs and DIIs showed divergent trends. On a YoY basis, DIIs raised their holdings in 22 out of 24 sectors.

The maximum increase in DII holdings was visible in EMS, Technology, Telecom, Retail, PSU Banks, and Healthcare, while Media and Logistics sectors experienced a reduction in holdings.

On a sequential basis, DIIs recorded the maximum increase in holdings in NBFC - Non Lending, Private Banks, Capital Goods, NBFC - Lending, and Consumer sectors.

FIIs, on the other hand, raised their stakes on both QoQ and YoY basis in PSU Banks, Telecom, Oil & Gas, Chemicals, NBFC - Lending, Insurance, and Metals.

However, on a YoY basis, FIIs reduced their holdings in 15 sectors, with the most significant reductions seen in EMS, Consumer Durables, Technology, Infrastructure, Retail, Private Banks, Utilities, Real Estate, and Consumer sectors.

The report highlighted that the shift in ownership patterns reflects changing market dynamics amid high valuations and strong participation across segments.

- ANI

Share this article:

Reader Comments

P
Priya S
Interesting data! It shows the market is maturing. Promoters ceding control to institutional investors (especially DIIs) can lead to better corporate governance and focus on shareholder value. The rise of domestic institutions is a very positive long-term story for Indian markets. 🇮🇳
R
Rohit P
Promoters selling at highs is their *right*. They built the company, they take money off the table. Problem is when they sell and company performance later falters. That's the real test. Hope SEBI is watching these transactions closely for any foul play.
S
Sarah B
As a long-term investor, I find the steady increase in DII ownership reassuring. It suggests domestic confidence in the India story, even if FIIs are a bit hesitant. The sectoral shifts are crucial for picking future winners. The data on PSU Banks and Telecom is particularly telling.
K
Karthik V
Yaar, this is worrying for small investors like us. We follow the promoters' lead, and if they are exiting, who are we left holding the bag for? The retail holding decline says it all. Maybe time to shift more money to mutual funds and let the DIIs manage the volatility.
M
Michael C
A balanced and insightful report. While promoter selling can be a red flag, the concurrent rise of professional domestic institutional ownership is a healthy evolution for any market. It reduces the "owner-emperor" risk and diversifies the shareholder base. Good analysis by Motilal Oswal.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50