Promoter holding in Nifty stocks crashes to 22-year low as insiders cash out

A quiet exodus is unfolding, with promoters of Nifty50 companies selling off their stakes at an unprecedented rate. Ownership has dropped to a 22-year low of 41.1% in the December quarter, according to NSE data. This decline—96 basis points (bps) sequentially and 167 bps over three quarters—raises concerns for investors.

The timing is notable: promoters cashed out as stock valuations hit record highs, selling before the market corrected.