CLSA's report on investor positioning for September 20 reported that direct ownership by retail shareholders rose 30 bps QoQ to a 12-quarter high. Foreign portfolio investors (FPIs) were added, however, domestic mutual funds (DMFs) cut weight in large-caps but both preferred small-caps over mid-caps.
The report explained that FPI ownership of BSE500 stocks rose 40 bps QoQ to 19.7 percent as of the end of September driven by a $6.3 billion inflow, while that of DMFs fell 20 bps QoQ. Both reduced their exposure to mid-caps by 30-35 bps and added small-caps instead.
Two sectors that saw an increase in weights by FPIs were healthcare and staples, as per the report.
FPIs turned 'neutral' from 'underweight' in healthcare. For staples, FPIs again cut 'underweight' 40 bps QoQ led by a cut in underweight of Hindustan Unilever/ITC by 20 bps each, added the report further.
The recent slip in the banking index has made FPIs take a step behind and cut their weightage by 110 bps to a multi-quarter low of 9 percent. FPIs reduced their overweight in HDFC Bank/Kotak Bank by 65/78 bps during the quarter, CLSA added.
Meanwhile, domestic mutual funds (MFs) cut weight in Reliance Industries, Bharti Airtel, and utilities while increasing it in IT, staples, and NBFCs.
According to the brokerage, DMFs are big 'overweight' on ICICI Bank, NTPC, SBI, and Axis Bank, and 'underweight' on RIL, HUL, TCS, and ITC. "A cut in underweight of HDFC by 20 bps led to a cut in underweight of NBFCs for DMFs by 60 bps," the report added.
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(Edited by : Jomy)
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