Long-term investor life insurers raised stakes in 8 stocks by up to 14% in Q4
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Insurers are considered long-term investors in the market, as they have a longer mandate to invest policyholders’ money.
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Five of the eight stocks managed to beat the flat returns on Sensex on a year-to-date basis.
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NEW DELHI: Insurance companies lapped up shares of at least eight BSE500 companies during the January-March quarter and increased holdings by between 200 basis points and as high as 14 per cent. Five of the eight stocks managed to beat the flat returns on Sensex on a year-to-date basis.
Signs of Moderation
Retail ownership of top 500 stocks of BSE saw a sequential decline in December quarter. Is their interest waning?
Illustration by Raj Verma
Stock markets have had a stellar run since their lockdown lows, with the BSE Sensex rising from 25,638 at the peak of the crisis in 2020 to 52,516 in mid-February 2021. Since then, it has been a slow grind, with the index hovering around the 50,000 mark. One of the clearest signs of the earlier euphoria wearing off is the dip in retail ownership of BSE 500 stocks. Consider this. There has been a decline in retail ownership - those holding up to Rs 2 lakh nominal capital - in three out of five stocks in BSE 500 in December quarter. In fact, overall retail ownership of BSE 500 stocks fell from 6.9 per cent in September quarter to 6.8 per cent in December quarter. Individual investors had increased stake in almost two-third (338) companies in July-September. This fell to 207, or 41 per cent, over the next three months.