Interesting insights from NSE Market Pulse June 2022 edition

Some interesting trends in ownership of NSE listed stocks by FIIs, DIIs, and other investors. FII ownership in the NSE floating stock fell to a 39-quarter low in the March quarter. While the retail ownership increased to 9.7%.

The FII ownership of NSE listed stocks hit a 13-year low, dropping to 39.1% in December quarter.

FIIs pulled a record $18.5bn in FY22. The selling has continued in FY23 as well, with net outflows of $11bn as of 17th June 2022.

Retail participation picked up over the last couple of years and has continued to remain strong with inflows of Rs. 497 bn in the first quarter of 2022.

Retail ownership in Nifty 500 companies remained steady at a 55-quarter high of 9.1% in the March quarter. This was in line with the broader listed universe, but lower than the rise in the Nifty 50, signaling higher buying by retail in larger-cap companies amidst weak overall market sentiments.

Client category-wise share in NSE’s cash market turnover: Individual investors share in NSE’s cash market turnover has declined to 37% in FY23 so far. FY21 and FY22 saw individual investors contribute 45% and 40.7%.

Ownership pattern of NSE-listed companies as of March 2022 of various investors.

EBITDA growth of Nifty 50 companies on YOY basis.

EBITDA margin of Nifty 50 companies in Q4FY22 on a YOY basis.

PAT growth of Nifty 50 companies on a YOY basis.

All sectors in the Nifty 500 universe registered a YoY expansion in net sales in March quarter led by energy, materials, utilities, industrials, and information technology.

Monthly trend of sector-wise FY22 consensus earnings growth estimate (% YoY). Given the tepid economic environment and supply chain disruptions, estimates have seen marginal downgrades. But are the analysts being too optimistic?


Why is this estimated? Isn’t FY22 over and we have earnings data?