Mumbai (Maharashtra) [India], February 11 (ANI): Promoters of companies listed in the Indian stock markets are steadily reducing their stakes, as high valuations and strong investor appetite provided an opportunity to liquidate holdings at elevated levels, according to a report by Motilal Oswal Financial Services.

The report highlighted that promoter holding in the Nifty 500 declined to an all-time low of 48.8 per cent in December 2025.

It stated 'Promoter holdings, which have historically remained range-bound, continued to decline materially to an all-time low of 48.8 per cent (-90bp YoY, -50bp QoQ) in Dec'25'.

As per the report, the sharp dip was driven by a recovery in the primary market over the last three quarters, where high valuations and strong investor appetite created an attractive opportunity for several promoters to pare their stakes.

At the same time, domestic institutional investors (DIIs) increased their ownership. Over the past one year, DII ownership rose 210 basis points YoY and 60 basis points QoQ to an all-time high of 20.6 per cent in December 2025.

In contrast, foreign institutional investor (FII) ownership dipped 50 basis points YoY, although it rose 10 basis points sequentially, to 18.4 per cent in December 2025, compared to 18.9 per cent in December 2024.

Retail holdings also saw a decline, slipping to 12.1 per cent in December 2025, down 60 basis points YoY and 20 basis points QoQ.

Within the Nifty-500 universe, FIIs and DIIs showed divergent trends. On a YoY basis, DIIs raised their holdings in 22 out of 24 sectors.

The maximum increase in DII holdings was visible in EMS, Technology, Telecom, Retail, PSU Banks, and Healthcare, while Media and Logistics sectors experienced a reduction in holdings.

On a sequential basis, DIIs recorded the maximum increase in holdings in NBFC - Non Lending, Private Banks, Capital Goods, NBFC - Lending, and Consumer sectors.

FIIs, on the other hand, raised their stakes on both QoQ and YoY basis in PSU Banks, Telecom, Oil & Gas, Chemicals, NBFC - Lending, Insurance, and Metals.

However, on a YoY basis, FIIs reduced their holdings in 15 sectors, with the most significant reductions seen in EMS, Consumer Durables, Technology, Infrastructure, Retail, Private Banks, Utilities, Real Estate, and Consumer sectors.

The report highlighted that the shift in ownership patterns reflects changing market dynamics amid high valuations and strong participation across segments. (ANI)