LIC’s holding in listed entities at all-time low on profit booking in Q4

Pranav Haldea, the MD of Prime Database Group attributed this to profit-booking by India’s largest institutional investor, adding that the stake held had touched an all-time high of 5 per cent in 2012. 

In value terms there was an increase in the equity assets held by the state-run company at an all-time high of Rs 7.24 lakh crore in March, which represents a 6.30 per cent increase, it said, pointing out that market benchmarks Sensex and Nifty rose by 3.70 and 5.10 per cent, respectively, during this period. 

Holdings by insurance companies declined to a 5-year low of 4.80 per cent as on March 31, down from 5 per cent at the end of December 31, 2020. In value terms, it went up by 3.09 per cent from the previous quarter to an all-time high of Rs 9.48 lakh crore as on March 31, 2021. 

LIC accounts for over three-fourths of the overall value of the stakes held by insurance companies in equities, it added. Mutual funds’ holding reduced to 7.23 pc as on March 31, 2021 down from 7.42 pc as on December 31, 2020, and Haldea said this is the fourth straight quarter where the MFs have sold their holdings after 24 continuous quarters of an increase. 

However, in value terms, the holding of domestic mutual funds went up by 4.81 per cent to Rs 14.30 lakh crore on March 31, 2021 from Rs 13.64 lakh crore on December 31, 2021. Net outflows by domestic mutual funds stood at Rs 26,810 crore during the quarter, as retail investors booked profits.Net ouflows of domestic institutional investors stood at Rs 23,124 cr during the quarter, while in value terms, DII holding went up to an all-time high of Rs 25.75 lakh crore as on March 31, 2021.