MUMBAI: Promoters are returning to the buy side of India's equity market after years of selling, even as foreign investors pare their holdings to a 14-year low. Could this shift signal that company insiders are finding value in stocks that foreign investors are exiting, and point to a broader market recovery?
Private promoters held 41.93% of companies listed on the National Stock Exchange (NSE) at the end of the September 2026 quarter, their highest ownership since June 2023, when it stood at 42.16%, according to Prime Database. The last time it was significantly higher was September 2020, at 45.34%. The Nifty 50 went on to rally 57% over the following 12 months.
Promoters did cash out between 2021 and early 2026. Shashank Udupa, a research analyst registered with the Securities and Exchange Board of India (Sebi) and founder of Vayu Capital, said founders monetized stakes amid a buoyant market and a strong initial public offering (IPO) window. He believes that phase is now over.
“Promoters have now bought for four straight quarters, ₹36,336 crore in the June quarter and ₹6,595 crore in September,” he said.
The shift comes as foreign institutional investor (FII) holding in NSE-listed companies has dropped to 15.57% as of end of the September quarter, the lowest in 14 years, since the June quarter of 2012, when it stood at 15.34%.