Domestic Institutional Investors In India: The country has prospered as a result of government policies, which have created long-term wealth for investors. The markets move in response to news and events, and when some prominent investors invest or divest in a company, the stock price moves sideways or downward.
The DIIs importance in investing in Indian markets is to provide stability, support, and growth. DIIs sometimes absorb potential selling by FIIs, keeping the market stable. In this article, we will take a look at some of the Top 10 Domestic Institutional Investors In India.
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Domestic Institutional Investors In India
What are domestic institutional investors?
Domestic institutional investors (DIIs) are financial entities within a country that invest in various financial instruments, such as stocks, bonds, and mutual funds. These entities include insurance companies, mutual funds, pension funds, and other non-banking financial institutions.
DIIs play a crucial role in the stability and development of the domestic financial markets, contributing to liquidity and influencing market trends. Market research, economic conditions, and regulatory considerations frequently influence investment decisions. As significant players in the financial landscape, DIIs contribute to capital formation, aiding in the efficient functioning of the overall economy.
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How does DII impact the company’s shareholding?
The overall shareholding pattern changes when DIIs buy or sell large amounts of a company’s stock. Increased DII ownership may indicate confidence in the company, attracting additional investors. Conversely, significant divestments by DIIs may raise concerns among other shareholders, affecting the stock’s performance.
DIIs’ actions reflect their perceptions of a company’s financial health and growth prospects, influencing overall market sentiment and stock value.
Top 10 Domestic Institutional Investors In India
Domestic Institutional Investors in India #1: President of India
As of December 2023, the President of India owns a stake in 78 companies worth Rs. 38,42,672 crore, with the top holdings by value being LIC (5.69 lakh crore), SBI (3.18 lakh crore), IRFC (1.88 lakh crore), Oil and Natural Gas Corporation Ltd. (1.84 lakh crore), and Coal India (1.56 lakh crore).
As of December 2023, the top investments in the portfolio’s diverse industries are banks (15%), miscellaneous (6%), power (6%), fertilisers (5%), and oil drilling and exploration (4%).
Domestic Institutional Investors in India #2: SBI Group
As of December 2023, the SBI Group owns stakes in 166 companies with a total net worth of Rs. 5,25,093 crore, with the top holdings being SBI Life Insurance worth Rs. 77,763 crore, ICICI Bank worth Rs. 51,465 crore, Reliance Industries worth Rs. 40,235 crore, SBI Card and Payment Services worth Rs 46,761 crore, and Infosys worth Rs. 30,000 crore.
As of December 2023, the top investments in the portfolio’s diverse industries are miscellaneous (7%), pharmaceuticals (5%), private banks (5%), cement (4%), and construction and contracting – Civil (3%).
Domestic Institutional Investors in India #3: HDFC Group
As of December 2023, the HDFC Group owns stakes in 254 companies with a total net worth of Rs. 4,05,637 crore, with the top holdings being HDFC Life Insurance worth Rs. 62,465 crore, HDFC AMC worth Rs. 40,177 crore, HDFC Bank worth Rs 20,857 crore, ICICI Bank worth Rs. 19,877 crore, and Infosys worth Rs. 10,029 crore.
As of December 2023, the top investments in the portfolio’s diverse industries are private banks (6%), pharmaceuticals (5%), miscellaneous (5%), computers – software (4%), and chemicals (3%).
Domestic Institutional Investors in India #4: ICICI Group
As of December 2023, the ICICI Group owned stakes in 241 companies with a total net worth of Rs. 3,88,635 crore, with the top holdings being ICIC Lombard General Insurance worth Rs. 38,770 crores, ICICI Prudential Life Insurance worth Rs. 37,860 crores, ICICI Bank worth Rs. 25,889 crores, Infosys worth Rs. 24,783 crores, and ICICI Securities worth Rs. 19,827.60 crores.
As of December 2023, the top investments in the portfolio’s diverse industries were Miscellaneous (7%), Pharmaceuticals (6%), Private Banks (5%), Civil Construction and Contracting (3%), and Auto Ancillaries.
Domestic Institutional Investors in India #5: Kotak Mahindra Group
As of December 2023, the Kotak Mahindra Group owns stakes in 172 companies with a total net worth of Rs. 2,57,512 crore, with the top holdings being Kotak Mahindra Bank worth Rs. 93,924 crore, Mahindra and Mahindra worth Rs. 13,950 crore, ICICI Bank worth Rs. 9,600 crore, Axis Bank worth Rs. 5,538 crore, and Larsen and Toubro worth Rs. 19,827 crore.
As of December 2023, the top investments in the portfolio’s diverse industries are Banks – Private (7%), miscellaneous (5%), pharmaceuticals (4%), auto ancillaries (3%) and oil drilling and exploration (3%).
Domestic Institutional Investors in India #6: Reliance Group
As of December 2023, the Reliance Group owns stakes in 28 companies with a total net worth of Rs. 2,40,024 crore, with the top holdings being Reliance Industries worth Rs. 2,06,057 crore, Jio Financial Services worth Rs. 7,679 crore, Alok Industries worth Rs. 6,456 crore, and Justdial worth Rs. 4,495 crore.
As of December 2023, the top investments in the portfolio’s diverse industries are media and entertainment (11%), textiles-weaving (7%), food processing (7%), power (7%), and miscellaneous (7%).
Domestic Institutional Investors in India #7: Axis Group
As of December 2023, the Axis Group owned stakes in 101 companies with a total net worth of Rs. 99,962 crores, with the top holdings being Bajaj Finance worth Rs. 8,481 crores, Avenue Supermart worth Rs. 6,610 crores, Cholamandalam Investment & Finance Company worth Rs. 4,646 crores, Torrent Power worth Rs. 3,747 crores, and Tata Motors worth Rs. 3,694 crores.
As of December 2023, the portfolio’s top investments are Miscellaneous (5%), Hospital and Healthcare Services (4%), Auto ancillaries (4%), Cement – Major (4%), and Computers – Software (4%).
Domestic Institutional Investors in India #8: Sundaram Group
As of December 2023, the Sundaram Group owns stakes in 52 companies with a total net worth of Rs. 67,450 crores, with the top holdings being TVS Motor Company worth Rs. 47,788 crore, Bharat Forge – Rs. 6,823 crores, TVS Holdings worth Rs. 1,430 crore, Kalyani Investment Company worth Rs. 1,002 crore, and Sundaram Finance Holdings worth Rs. 999 crore.
As of December 2023, the portfolio’s top investments in various industries were Miscellaneous (10%), Finance – General (6%), Electric Equipment (6%), Hospital and Medical Services (6%), and Pharmaceuticals (4%).
Domestic Institutional Investors in India #9: Euro-pacific Growth Fund
As of December 2023, the Euro-Pacific Growth Fund owns stakes in six companies with a total net worth of Rs. 58,480 crore. The top holdings are Reliance Industries worth Rs. 23,283 crore, Bharti Airtel- Rs. 15,901 crore, Kotak Mahindra Bank- Rs. 12,426 crore, Maruti Suzuki- Rs. 3,526 crore, and Jio Financial Services- Rs. 2139 crore.
As of December 2023, the top investments in the portfolio’s diverse industries were finance – Others (17%), telecommunications (17%), refineries (17%), private banks (17%), and personal care (17%).
Domestic Institutional Investors in India #10: Birla Group
As of December 2023, the Birla Group owns stakes in 124 companies with a total net worth of Rs. 56,941 crore. The top holdings are ICICI Bank worth Rs. 9,324 crore, Infosys worth Rs. 6,927 crore, Axis Bank worth Rs. 3,338 crore, United Spirits worth Rs. 1,592 crore, and Coforge worth Rs. 1,531 crore.
As of December 2023, the portfolio’s top investments in various industries were miscellaneous (9%), pharmaceuticals (6%), chemicals (5%), private banks (4%), and diversified (3%).
Domestic Institutional Investors in India: (Bonus) Life Insurance Corporation of India
As of March 31, 2023, LIC held approximately Rs. 10 lakh crore in its portfolio and had invested in 273 companies. LIC‘s top holdings include 6.31% in Reliance Industries, 15.21% in ITC, 4.84% in TCS, 9.02% in SBI, and 6.93% in ICICI Bank.
Conclusion
As we conclude the article on Domestic Institutional Investors in India, it is evident that DIIs significantly impact the shareholders and decision-making of any company. The rise of DIIs will certainly add value to the market and eco-space. Because the shareholding patterns of listed companies change every quarter, more is needed for investment decisions. Before investing, it is critical to understand the potential returns and risks involved.
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Written by Santhosh
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