The market closely follows promoter movements, and their buying and selling of stocks. Does this make a difference to the performance in share price, at least in the short term?
We ran short-term weekly backtests for two queries: where promoters increased their shareholding QoQ by more than 2%, and where promoters decreased their shareholding QoQ for more than 2%. There does appear to me a difference - in the first case, returns outperformed Nifty since the September shareholding change, and in the second, returns significantly underperformed Nifty since the September shareholding change (weekly backtests, two months).
We will continue tracking this in December. For all shareholding screeners, click here.