Individual Ownership in NSE-Listed Firms Hits Record 19.5% in Q2FY27

Households Strengthen Their Hold on India’s Listed Equities

Domestic individual ownership has set a new high, while foreign portfolio investors’ share has slipped to its lowest level in more than two decades.

The record reflects direct and fund-based exposure

Individual ownership, including direct shareholdings and indirect exposure through domestic mutual funds, increased by 26 basis points quarter-on-quarter to 19.5% at the end of September. The combined value of those holdings stood at ₹90.4 trillion, according to the NSE’s India Ownership Tracker. The measure therefore captures more than shares held in personal trading accounts: it also includes individuals’ equity exposure through domestic funds.

Direct ownership rose 10 basis points to 9.6%, with holdings valued at ₹44.6 trillion. That share remains 20 basis points below its post-pandemic peak of 9.8% in December 2024. The latest increase extends a recovery in direct ownership that began in the previous quarter, after a dip in Q4FY26.

A sustained shift in the ownership balance

Combined individual ownership has exceeded FPI ownership for eight consecutive quarters, marking a notable change from the long period of foreign-investor dominance described in the NSE report. In Q2FY27, FPI ownership fell 38 basis points from the previous quarter to 14.7%. It moved below 15% for the first time in 17.5 years, according to the data.

The figures point to a broader domestic presence in the market’s ownership base, but they do not establish that individual investors have replaced foreign capital in every company or sector. The data are aggregate measures across NSE-listed firms. They also do not, by themselves, explain why FPI ownership declined or indicate how either group may invest in future quarters.

Buying continued, but the pace eased in Q2

Net purchases in the secondary market supported the rise in direct ownership. Individuals bought equities worth ₹42,700 crore in Q1FY27, their highest net purchase in six quarters, followed by net purchases of ₹4,900 crore in Q2FY27. The sequential slowdown is important: the record ownership share was accompanied by continued buying, but Q2’s reported net purchases were substantially lower than Q1’s.

For the cash market, individuals recorded net inflows of ₹45,912 crore from January to October 2026. The annual figures show that flows can vary considerably: net inflows were ₹165,811 crore in 2024, while 2025 recorded net outflows of ₹5,717 crore. Ownership levels and trading flows are related indicators, but they measure different things and should not be treated as interchangeable.

Promoters’ total ownership also rose to a seven-quarter high of 50.4% in Q2FY27. The increase was led by higher private Indian and foreign promoter holdings, partly offset by a decline in the government’s share. This means the gains in individuals’ ownership form part of a wider change in the market’s ownership mix, rather than a simple transfer from foreign investors to households.

Key Highlights

• Combined individual ownership reached a record 19.5% in Q2FY27, up 26 basis points quarter-on-quarter.
• Direct individual holdings rose to 9.6%, valued at ₹44.6 trillion.
• Direct and indirect individual equity holdings together were valued at ₹90.4 trillion.
• FPI ownership declined to 14.7%, a 21-year low and below 15% for the first time in 17.5 years.
• Individuals’ net secondary-market purchases eased from ₹42,700 crore in Q1FY27 to ₹4,900 crore in Q2FY27.
• Promoter ownership increased to 50.4%, its highest level in seven quarters.

Investor Note: Rising domestic ownership may make the market’s investor base less reliant on foreign holdings, but aggregate ownership data do not indicate whether individual investors are buying suitable securities or at attractive prices. Investors should weigh their own risk tolerance and investment horizon rather than treating a record ownership share as a signal to buy equities.