Institutional investors' share in Nifty 50 falls to record low of 56.1% amid shift to mid and smallcap stocks: Report
Individual investors also reduced their allocation to Nifty 50 stocks during the quarter. Their allocation fell by 3.1% from the previous quarter to a record low of 33.4%
Institutional investors' share in Nifty 50 stocks has hit a record low of 56.1% in the first quarter of FY27, according to the NSE Market Pulse report for August. This decline of 3.1 percentage points from the previous quarter marks a 4.8 percentage points drop in the first half of 2026. The allocation is also 16.3 percentage points below the pre-pandemic peak of 72.4% in December 2019.
The NSE report attributes the shift to a move away from large-cap stocks to mid- and small-cap stocks. Individual investors also reduced their allocation to Nifty 50 stocks by 3.1 percentage points to a record low of 33.4%. The report highlights a broader trend of institutional investors spreading their investments across more listed companies, particularly FPIs who have increased their portfolio from 1,200 in December 2020 to over 1,770 by the end of 2022.
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