Retail Shareholding on NSE Drops to 7.25%, Lowest Since December 2021

Retail investors reduced their stake in NSE‑listed companies during a period of strong market gains, pushing their overall share of Indian equities to the lowest level since December 2021. 

Retail Shareholding Drops to 7.25% in December Quarter 

Data from the National Stock Exchange shows retail ownership fell to 7.25%, the lowest since December 2021. The Nifty 50 rose 6.2% in the December 2025 quarter, yet individual shareholders and high‑net‑worth individuals sold shares worth ₹57,404 crore.  

Retail ownership had peaked at 7.7% in December 2024 and has since slipped by roughly 50 basis points. 

Domestic Institutional Buying Reaches Record Levels 

Domestic institutional investors (DIIs) bought more than ₹2 00,000 crore of shares during the same quarter, setting a new high.  

Mutual fund holdings rose to 11.1%, while total DII participation reached 18.7% as of December 2025. Insurance companies accounted for 5.4% of the total, with the balance held by other financial institutions. 

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Foreign Portfolio Investors Continue Net Selling 

Foreign portfolio investors (FPIs) remained net sellers, disposing of ₹13,072 crore of equities. Their overall share in Indian stocks fell to 16.6%, down from 21.2% in December 2020, reducing their influence on market direction. 

Promoter and Overall Shareholding Trends 

Promoter holdings slipped to a five‑year low of 49.73% in the December quarter, edging closer to the 49.4% low recorded in March 2019. Combined holdings of DIIs, retail investors and HNIs reached an all‑time high of 28% on 31 December 2025. 

Profit‑Taking Episodes 

Retail investors sold ₹6,000 crore between 2 and 3 February, a period when the benchmark index surged nearly 4%. Over the quarter, retail investors reduced stakes in 1,092 companies while increasing holdings in 1,019 companies. 

Conclusion 

Retail shareholding fell to 7.25% as markets rallied, while domestic institutions amassed over ₹2 00,000 crore of shares. FPIs continued to trim exposure, and promoter holdings reached a five‑year low, highlighting a shift in the composition of Indian equity ownership. 

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