Shareholding moves in Q4: Investors’ verdict on India's conglomerates
In the third part of our shareholding series, we examine the fate of India’s business titans as market reality bites.
As markets whipsawed from February's depths to March's resurgence, India's mightiest business empires—from Tata to Birla faced a high-stakes showdown. While the Nifty 50 clawed back to flat (by the fiscal year end), a Mint analysis of the country’s leading business houses—Tata, Reliance, Adani, Rahul Bajaj, and Aditya Birla—with a fifth of India's market capitalization, unveiled a striking divergence: overseas and small investors retreated, while local institutional investors doubled down on select bets, hinting at a fascinating long-term focus.
Tata group: Only domestic held fort
India’s most valuable conglomerate, the ₹27.5 trillion Tata group, saw a dramatic reshuffle in its investor ownership. Foreign portfolio investors (FPIs) and retail shareholders slashed their stakes in key companies like TCS, Tata Motors, Tata Power, and Tata Steel, sequentially pruning their holdings in over 60% of the group companies. Yet, domestic mutual funds (MFs) stepped in aggressively, raising ownership in around 52% of the groups’ firms. However, despite this institutional support, the group’s market cap fell by 11%, the worst among its peers.
Also read Shareholding moves in Q4: Retail investors jump ship in choppy waters
Reliance group: Resilient despite retail, FPI exit
In Mukesh Ambani-led Reliance group companies, FPIs and retail investors reduced their holdings in around 60%, including companies like Reliance Industries (RIL), Just Dial, and Sterling & Wilson. However, domestic investors absorbed the shock, increasing their stakes in RIL, Jio Financial, and other units. This resilience helped Reliance eke out a modest 1% gain, narrowly avoiding the fate of its struggling rivals.
Adani Group: Deep cuts but pockets of domestic optimism
The Adani group bore the brunt of the quarter’s sell-off, with FPIs cutting exposure in 50% and retail investors fleeing even faster (67%) in the group companies. Flagship Adani Enterprises, along with Adani Ports, Adani Green, and Ambuja Cement, saw a reduction in their stakes. Yet, domestic institutions again saw an opportunity, raising their stakes in Adani Green, Adani Power, and Ambuja Cement—a sign that some remain bullish on the group’s long-term infrastructure bets. Still, the group’s market cap fell 5.6%, reflecting lingering scepticism.
Rahul Bajaj group: The standout performer
While FPIs and retail investors reduced their holdings in the Rahul Bajaj group by reducing their stakes in 40% and 50% of the group firms, respectively, the conglomerate emerged as the quarter’s biggest winner. Bajaj Finance, which makes up 44% of the group’s value, remained a magnet for foreign investors. Strong performances from Bajaj Finserv, Bajaj Auto, and Bajaj Consumer helped the group surge 17%—far outpacing its peers.
Also read Shareholding moves in Q4: Retail investors chased beaten down stocks
Aditya Birla Group: Steady domestic hand offsets foreign pullback
FPIs and retail investors pulled back sharply from the Aditya Birla Group, trimming stakes in 63% of the group, including UltraTech Cement, Hindalco, and Grasim. But domestic mutual funds held firm, increasing overall ownership in 50%. This support helped the group post a 4% gain, proving that local confidence can counterbalance global jitters.
This is the third part of a series of data stories on the latest shareholding pattern. Read the full series here.
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