NSE Nifty 500 Promoters Sell Rs 87,400 Crore in First Half Of 2024, Kotak Securities Says

Promoters of 37 companies in the NSE Nifty 500 sold around Rs 87,400 crore so far this year till June—the highest in the last five years—driven by business expansion, compliance with minimum public shareholding norms, debt reduction, and strategic realignment of promoter interests, according to Kotak Securities.

The sectors that have seen the most promoter stake sales in terms of value in 2024 include telecommunication services, information technology, and automobiles, Kotak Securities said.

Kotak Securities also noted that the that private promoter holding in the S&P BSE 200 declined to 38.8% in the March quarter, a 330-basis-point fall from 42.1% in the December 2022 quarter.

The combined holding of domestic investors, which includes mutual funds, retail investors, and banking and finance institutions, expanded by 80 basis points to 23.5% in the March 2024 quarter from 22.6% in December 2022 quarter, the research firm said, adding that the holdings of foreign portfolio investors declined to 20.5% from 21.4% over the same period.

The brokerage said mutual funds bought major stakes in companies when promoters sold stakes. This was evident in data showing the difference in company shareholding patterns.