The foreign portfolio investors (FPI) and domestic mutual funds (MF) have continued to shift from large-cap Indian stocks to mid and small-caps during the quarter ended June 2021.

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The FPIs and domestic mutual funds have reduced weight in large-caps by 1.8 ppt and 1.1 ppt sequentially to a multi-quarter low of 83.6 percent and 71.7 percent, respectively, according to a report by CLSA.

On the other hand, FPIs and MFs have raised weight in mid-caps to a multi-quarter high of 12.2 percent and 20.1 percent, up 0.8 ppt and 0.3 ppt, QoQ. Similarly, their weight in small-caps has increased by 1.0 ppt and 0.8 ppt QoQ to a nine-quarter high of 4.1 percent and 8.2 percent.

Despite an equity inflow of $0.7 billion, FPI ownership in BSE 500 stocks fell 65 bps QoQ to 20.1 percent at $576 billion as of the end of June, while that for domestic MFs rose by a small 5 bps QoQ to 7.5 percent after the best equity inflows in five quarters, as per the report.

The ownership of insurance companies declined 15 bps QoQ to 4.6 percent, while direct ownership of retail individuals rose by a big 20 bps QoQ to a 15-quarter high of 8.7 percent as of the end of June, the report added.

The biggest QoQ rises in allocation for retail investors were in Tata Steel, Laurus Labs and JSW Steel as they reduced Reliance Industries, Hindustan Unilever, HDFC Bank and TCS.

The proportion of retail in company shareholding rose most in Delta Corp, IEX, Amara Raja and Hathway while it fell the most in JK Cement, VIP and Lux industries.

Karnataka Bank, Nocil, South Indian Bank, Infibeam and Balaji Amines are among the stocks where ownership of retail is much higher than that of institutional investors.

Meanwhile, the value of shares pledged by promoters rose 14.6 percent QoQ to Rs 2.6 trillion as of June, driven mainly by a big rise in pledging in Vedanta, the report said.