Even as the total market wealth of high net worth individuals (HNIs) swelled 15.5% to ₹9.32 lakh crore in the June quarter, the big money booked profits across at least 11 stocks like Swiggy and Waaree Energies despite these counters giving double-digit returns in Q1.
The most dramatic casualty was food delivery giant Swiggy, where June quarter shareholding patterns show that HNI holding fell drastically from 10.62% to 3.53% quarter-on-quarter. The net sell-off is estimated at about Rs 5,400 crore by Prime Database.
Similarly, Nitco is estimated to have seen Rs 1,800 crore selling with ownership declining from 71.23% to 13.04%. Both the stocks saw 20% plus gains during the quarter, yet sophisticated money chose to exit rather than ride the rally.
Waaree Energies saw Rs 1,400 crore selling despite the stock going up over 30% during the period, highlighting how wealthy investors prioritize profit booking over momentum chasing, even as the solar play gained steam.
Then there’s Nazara Technologies, where the story has more sparkle: Star investor Rekha Jhunjhunwala fully exited the stock. HNI holding here fell from 17.30% to 12.71%, a selloff worth ₹417 crore. The gaming stock has doubled in three years, making it ripe for exits.
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Profit booking across market cap spectrumOriental Trimex shares rallied 54% but HNIs cashed out, reducing their stake from 36.69% to 25.44%. Microcaps Tirupati Forge, SPL Industries, and Atal Realtech also had similar stories to tell, with wealthy investors preferring profits over promises.
HNIs also showed little patience for Ambani’s RIL, which is trying to recover in 2025 after eroding wealth last year. RBL Bank also saw over Rs 400 crore sell-off by HNIs even as the stock delivered a handsome return of 43% during the quarter.
Beauty retailer Nykaa also gave double-digit gains but saw HNI holding going down, reinforcing the theme of systematic profit booking.
Interestingly, RIL and Waaree Energies continue to be among the top HNI bets in value terms, with Prime Database pegging HNI holding in RIL at ₹28,000 crore, followed by Infosys (₹25,000 crore) and HDFC Bank (₹24,000 crore). Other ₹10,000 crore-plus favourites include Titan, Kotak Mahindra Bank, Suzlon, Bajaj Finance, Bajaj Finserv, and Sundaram Finance.
Where did the HNI money go?During the quarter, HNIs doubled down on Kaveri Defence as ownership shot up from 24.61% to 47.99%. Others in the list include RPP Infra, GACM Tech, Silgo Retail, MM Forgings, MRF, Kesoram and 360 One WAM.
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What should retail investors do?The strategic exits by HNIs come as analysts are beginning to temper their near-term optimism. The ongoing Q1 earnings season has revealed pockets of weakness across the economy.
Analysts at Kotak Institutional Equities reduced their earnings estimates amid muted outlook across sectors. “1QFY26 earnings season shows continued weakness in consumption, muted IT services demand and weak loan growth for banks. Aggregate earnings were broadly in line with our estimates and consensus estimates,” it said.
However, Morgan Stanley’s Ridham Desai finds enough triggers for the market to hit a new high in the months ahead. “The soft earnings growth patch that started with 2QFY25 seems to be ending but the market is probably not yet convinced,” he said, adding that India is likely to gain share in global output in the coming decades, driven by strong foundational factors, including robust population growth, a functioning democracy, macro stability-influenced policy, better infrastructure, a rising entrepreneurial class, and improving social outcomes.
The HNI selling may be related to booking profits and exits by early investors, like in the case of Swiggy and Nazara. Some may also be reshuffling their portfolios to other more attractive opportunities or cashing out during the peak of the bullish phase seen in Q1. For retail investors watching the smart money move, the message is clear: even the ultra-rich aren’t immune to taking profits when stocks run hot.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)