FIIs consistently raise stake in 85 BSE500 companies in last 4 quarters; do you own any?

 30 out of 85 companies that have seen a gradual increase in FII holdings in the last four quarters.

Despite pouring in Rs 40,000 crore during the January-March period, FIIs have sold net Rs 20,000 crore worth of stocks in the last year.

That is because, in the last one year, FIIs have gradually reduced stake in 107 BSE500 companies, making them net sellers in the last four quarters. They include mid and smallcap names like Mindtree, Crompton Greaves, Oberoi Realty, Hindalco Industries, City Union Bank, Apollo Tyres, among others.

They have also reduced the stake in some large-cap companies. Maruti Suzuki's lackluster performance lately has forced FIIS to trim their stake in the company to 22.30 percent in March 2019 compared to 23.66 percent in June 2018.

Last month, Maruti Suzuki India reported a 5 percent YoY fall in March quarter profit, dented by weak operating performance and muted sales volume.

Another automaker M&M has also seen a declining interest of FIIs in its stock. The FII holding in the company has fallen to 31.30 percent in March 2019 from 33.98 percent at the end of June 2018, AceEquity data showed.

FIIs have trimmed their stake in FMCG major ITC as well. It is now at 17.04 percent compared to 17.49 percent seen at the end of June 2018.

After a couple of months of buying, FIIs have resumed selling in May just ahead of the elections verdict scheduled on May 23. However, experts attribute the current round of selling largely to global concerns, adding, if NDA gathers majority then the money that is waiting on the sidelines will also enter equity markets.

“Currently, most of the FII flows into India have been a part of the emerging market (EM) focused funds and not necessarily in India focused ETFs alone,” Nitin Rao, CEO, Reliance Wealth Management told Moneycontrol.

“A stable administration at the Centre could see India focused ETFs also attract flows. Given our views on other macro factors that we discussed, we see FII flows sustaining in Indian equities,” he said.

Source: Moneycontrol.com