A trend is also being seen continuously amidst the boom in the stock market. Amidst the valuations reaching very high levels, promoters are selling their stake rapidly. According to a report by Business Standard, the level of stake sale in small and medium companies has reached the highest level since the 2008 crisis. The report has written, quoting the DSP MF report, that the percentage of companies in BSE midcap and small cap whose promoter holding is decreasing has been above 20 percent continuously for the last 5 quarters. At the same time, this figure increased to 22.6 percent in the June quarter. This level was not seen till now after the financial year 2007.

The main reason for the share sale is the record rise in the stock. On September 24 itself, both the midcap and smallcap indices touched record levels. Promoters are selling additional stakes only to take advantage of this rise in shares.

This year, promoter share sale has crossed Rs 1 lakh crore . Share sale is being seen by promoters not only in small companies but in the entire market and it is also continuing. In the September quarter so far, promoters of 180 companies have sold shares worth a total of Rs 40 thousand crore through open market transactions. Not only this, in the year 2024, the value of stock sold by promoters in the secondary market has crossed Rs 1 lakh crore. This figure has been more than twice the shares sold in the entire year of 2023. Last year, promoters sold shares worth a total of Rs 48 thousand crore. Is this trend worrying? According to Motilal Oswal Financial Services, such trends are common in markets around the world amid the boom in the market and something similar is being seen in India as well. Promoters sell their stakes for many reasons when prices rise and in some of these cases it can be positive for the business. In such a situation, investors of strong companies should not worry too much about it.