Promoter holdings in private sector companies listed on the National Stock Exchange (NSE) reached a three-year high of 41.93% in the September 2026 quarter. This marks the second consecutive quarterly increase, reversing a steady decline observed since December 2021 when holdings stood at 45.15%.
According to Pranav Haldea, Managing Director at PRIME Database Group, this surge in promoter holdings is a significant indicator of the market potentially bottoming out. Haldea noted that while promoter selling can stem from various reasons, promoter buying consistently signals a positive outlook.
Consistent Promoter Buying Fuels Rise
Data reveals that private promoters have been net buyers for four consecutive quarters. In the second quarter of 2026, they purchased shares worth Rs 6,595 crore on a net basis. This followed an even more substantial buying spree in Q1, where net purchases totaled Rs 36,336 crore, marking the highest such figure in four years.
The increase in promoter holdings saw the share of ‘Indian’ private promoters rise from 32.21% as of March 31, 2026, to 32.92% by September 30, 2026. Concurrently, ‘foreign’ promoters' share marginally increased from 8.36% to 9% over the same period.
Shifts in Investor Holdings
Alongside the rise in promoter holdings, direct individual investor holdings, particularly from High Net Worth Individuals (HNIs), also saw an uptick. HNI holdings in NSE-listed companies increased to 9.50% by September 30, 2026, up from 9.46% on June 30, 2026. However, the share of retail investors slightly decreased from 7.35% to 7.32%.
Indirect investments through domestic mutual funds (MFs) continued their upward trajectory, reaching an all-time high of 11.82% by September 30, 2026, up from 11.58% in the prior quarter. This marks the 13th consecutive quarter of increase for mutual fund holdings, reflecting continued confidence from individual investors in these investment vehicles.
FPI and LIC Holdings Decline
Conversely, holdings by Foreign Portfolio Investors (FPIs) and the Life Insurance Corporation of India (LIC) witnessed a decline during the quarter, indicating a shift in institutional investment patterns amidst the rising domestic confidence.