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As shares rally, investors mimic HNI portfolios to make big bucks

As stock markets beat the pandemic blues, investors’ wealth ballooned when most businesses were struggling due to the severe disruptions caused by the Covid crisis.

With limited options to spend due to curbs on travel and stay-at-home guidelines, a gush of fresh money found its way to stock markets last year. Many rode on the tailcoats of investors who were established and known for making a fortune by investing in markets.

Eight out of 10 stocks held mostly by high net-worth individuals (HNIs) in the March quarter soared this year, rising as much as 100%. In contrast, the benchmark Nifty gained around 12% in the same period.

Aggregate holding of HNIs in firms listed on NSE grew to 2% in the March quarter from 1.78% a year earlier, showed data compiled by Prime Database.

The data showed that the top 10 companies where HNIs had the highest shareholdings were Som Distilleries & Breweries Ltd at 49.06%, Ortin Laboratories Ltd (48.19%), Zenith Steel Pipes and Industries Ltd (47.04%), Cerebra Integrated Technologies Ltd (45.82%), Inventure Growth & Securities Ltd (45.40%), Vishwaraj Sugar Industries Ltd (43.80%), Subex Ltd (42.38%), Reliance Power Ltd (42.16%), Shree Ram Proteins Ltd (40.95%) and R Systems International Ltd (39.54%).

“Historically, stocks held by high-profile HNI investors, who have a good track record, create euphoria whenever they enter a counter,” said Vinay Ahuja, executive director, IIFL Wealth.

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Hindustan Times