Who controls India Inc.? The answer is starting to change: NSE report

Synopsis

The NSE's March 2025 report reveals private Indian promoters still lead with a 32.5% stake in NSE-listed firms. However, domestic mutual funds have reached a record 10.4% share, fueled by SIP inflows. Retail investors are also expanding their footprint, reflecting a shift towards a more diversified ownership base in India Inc.

In the latest edition of its “India Inc. Ownership Tracker” for March 2025, the National Stock Exchange (NSE) reveals that private Indian promoters continue to hold the largest stake in India Inc., commanding a 32.5% share in NSE-listed companies.

However, the report also signals a shifting tide, with domestic mutual funds (DMFs) and retail investors gaining significant ground in India’s corporate ownership landscape.

Here’s a snapshot of the holdings as of March 2025:

Promoter holdings fall to 50.1%

Promoter ownership dropped for the third consecutive quarter, settling at 50.1%—a combination of private Indian promoters (32.5%) and government holdings (9.9%). This marks a continued dilution trend in promoter stakes across listed entities.

Domestic institutions strengthen their position

Domestic mutual funds saw their share rise to an all-time high of 10.4%, driven by sustained Systematic Investment Plan (SIP) inflows. This includes 8.4% from active funds and 2.0% from passive strategies. Notably, insurance companies, banks, and financial institutions now hold 5.6%, collectively pushing domestic institutional holdings ahead of foreign players for the first time since 2003.

Foreign investors hold steady

Foreign Portfolio Investors (FPIs) increased their stake slightly to 17.5%, recovering from a 13-year low recorded in December 2024. Foreign promoters continue to maintain 8.1% ownership.

Retail investors expand their footprint

Direct ownership by individual investors climbed to 9.5%, while their combined share—including mutual fund holdings—now stands at a record 18.2%. This trend reflects rising household interest in equity markets, further evidenced by an estimated Rs 46 lakh crore accretion in household wealth from equities over the past five years.

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Sectoral and market cap preferences

FPIs maintained a bullish stance on financials while exercising caution on consumption and commodities. DMFs, on the other hand, pared exposure to financials and consumer staples, while turning incrementally positive on consumer discretionary sectors. The report also notes a renewed institutional tilt toward large-cap stocks, particularly in the Nifty50 and top-decile companies.

While private Indian promoters remain the dominant shareholders, the steady rise in domestic mutual fund and retail participation signals a more democratized and diversified ownership base in India Inc.

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