Retail investors’ exposure to Indian companies touches an all-time high

Retail investors steered the Indian stock market in 2021, undeterred by a slew of factors that rattled global equities. They pumped in money even as central banks, to tackle inflation, spoke of withdrawing monetary support.

Shareholding of retail investors in all listed companies on the National Stock Exchange (NSE) reached an all-time high of 7.32% at the end of the December quarter, according to capital markets data provider Prime Database Group. A year ago, the figure was 6.90%, and 7.13% at the end of the September quarter.

“What is also significant is the continuing overwhelming presence of retail investors in mid- and small-cap companies, which institutional investors typically stay away from. The picture is very different if one looks only at Nifty companies,” said Pranav Haldea, managing director of Prime Database Group.

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