A look at market participation in June quarter

The markets scale all-time highs! Just did a little digging to find out how the participants’ mood has been set in and what market participants are up to in June ‘21 quarter.

In the June quarter Retail and Mutual Funds funds were the biggest buyers, while FIIs were marginal. Primary issues/buybacks ended up soaking up the bulk of the supply.

Mutual Funds were big buyers in large-cap stocks whereas Individuals were big buyers in Small and Mid Caps. FIIs were net sellers in large caps but net buyers in Small and Mid Caps.

Retail investors were buyers in almost all sectors except for a very small selling in the IT sector. Buying mostly in Small and Mid Caps.

  • Retail direct buying into equities was at US$4.8bn compared to US$3.8bn in the Mar-21 quarter.

  • Retail ownership of equities is at a 12-year high. If we view MFs as agents/intermediaries of households investing in markets, then total household ownership of Indian equities is now at a 15-year high.

What do you make of growing retail participation in the markets?