Promoters of major Indian companies increased their ownership in the June quarter, signalling confidence amid sectoral shifts, including notable rises in Reliance Industries and Manappuram Finance, according to Elara Capital data.
Reliance Industries and a cluster of other large Indian companies saw promoters lift their stakes in the June quarter, with data compiled by Elara Capital showing that insider holding was broadly steady after easing in previous quarters. The brokerage said the Nifty 50’s promoter ownership stood at 40.5%, while the NSE Midcap 150 was at 54.5%, the NSE Smallcap 250 at 52.5% and the NSE 500 at 49.5%.
The gains were spread across a range of sectors, with auto, chemicals, diversified businesses, fast-moving consumer goods, industrials, textiles, transport and utilities all recording higher promoter ownership quarter on quarter. By contrast, banks, cement, consumer discretionary, energy, financials, healthcare, information technology, media, metals, real estate and telecom saw declines, according to Elara Capital’s analysis.
Among the biggest individual moves, Manappuram Finance posted the sharpest rise in promoter holding, jumping to 41.7% from 31.8% after Bain Capital moved to acquire a majority stake. Gabriel India also saw a large increase to 63.6% following approval of a composite scheme of arrangement by the National Company Law Tribunal. Reliance group names were also prominent: Jio Financial’s promoter stake rose to 49.1% and Reliance Industries edged up to 50.5%, while Adani Energy Solutions and Aditya Birla Capital also recorded higher promoter ownership. HDFC Life Insurance, GMR Airports, NCC and Eris Lifesciences were among the other names on the list.
For retail investors, promoter buying is often treated as a signal of confidence from those closest to the business. Harshal Dasani, business head at INVasset PMS, told Business Standard that the clearest signal comes when promoters buy in the open market over multiple quarters rather than through one-off transactions tied to fund-raising or corporate events. He said investors should use promoter buying as a screening tool, then test the case against earnings quality, balance sheet strength and valuation.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
