Foreign portfolio investors have been on a selling spree in the Indian equity market since October 2021. The relentless selling by FPIs is on the back of high commodity inflation that happened due to the Russian-Ukraine War, which led to a spike in interest rates and, in turn, led to a jump in bond yields in the US and other developed markets.
FIIs raise stakes in these 5 companies in Nifty 500 Index
As per media reports, FPIs have sold Indian stocks worth ₹2.4 lakh crore since October 2021. That's when the benchmark Sensex and Nifty last hit record highs.
The Sensex and Nifty are down about 15-16% from their all-time highs in October. In the last month alone, the Nifty has dropped 4.66%. Since the beginning of the year, the index has dropped approximately 1,864 points, falling to 15,752 from 17,638. The mid-cap index has fallen 20%, and the small-cap indices have dropped 22%.
However, foreign investors have raised their stake in about 181 stocks in the Nifty 500 index, according to data from Trendlyne on June 4 showed.
Stocks in which foreign investors raised stakes in the March 2022 quarter include names like Restaurant Brands of Asia, Brightcom Group Ltd., NALCO, Gujarat Narmada Valley Fertilizers & Chemicals Ltd., and KEI Industries.
Out of 181 stocks, 2 stocks saw an increase of over 10%, and 8 stocks saw an increase of over 3-5%, the data from Trendlyne showed.
FIIs have been bullish on the company for a long time. This is clear given their increased exposure to the stock over the last four quarters. FIIs held a stake of 18.85% in KEI Industries back in March 2021. The exposure now stands at 25.2%. The majority of the increase happened in the most recent quarter. The promoters hold 38 per cent of the shares in the company. Mutual Funds decreased their holdings from 21.12% to 18.80% in the March 2022 quarter. The regular shareholders own 15.18 percent.
Shares of KEI Industries closed at ₹1197/share (up 3.93%) on the BSE in Friday's trade. The stock is now trading near its 52-week high of Rs. 1,377.4, which was marked on September 14, 2021, and with Friday's closing price, the stock is 15.037% away from its 52-week high.
The company is engaged in the business of manufacturing, sale and marketing of all range of power cables. The stock has delivered a return of 29.85 per cent in the last six months and a return of 59.01 per cent in the last one year.
KEI Industries reported a 29.7% rise in net profit to ₹115.9 crore on a 44.19% increase in net sales to ₹1,799.5 crore in Q4 FY22 over Q4 FY21. Profit before tax increased by 33.04% in Q4 FY22 to ₹155.8 crore, up from ₹117.06 crore in Q4 FY21.
National Aluminium Company Limited (NALCO) is a navratna central public sector enterprise (CPSE) under the Ministry of Mines, Government of India. The Company is a group A' CPSE, having integrated and diversified operations in mining, metals, and power. Presently, the government of India holds a 51.50% stake in NALCO.
Foreign investors' stake in the company stood at 18.0% in the March 2022 quarter as against 8.41% in Q4 2021, up by 9.51%. The number of foreign investors increased from 267 to 332 in the Mar 2022 quarter. Promoters' holdings remain unchanged at 51.28%. While mutual funds decreased holdings from 10.12% to 8.70% in the March quarter,
Shares of NALCO have been falling in the last couple of months. In just the last month, it has fallen 25.5%, while it has lost 43.63% in the last 3 months. Furthermore, in the last one year, the stock has corrected almost 11.74%.
NALCO reported a 9.5 per cent rise in consolidated profit at ₹1,025.46 crore for the quarter ended March 2022 on the back of higher income as against ₹935.74 crore in the year-ago period. As a part of its green initiative, NALCO has installed 198 MW of wind power plants at various locations in the country and 800 kWp of rooftop solar power plants at its premises to join hands for carbon neutrality.
Brightcom Group Ltd.
Hyderabad-based Brightcom Group saw its FIIs holding a rise from 4.6% in March 2021 to 12.2% in March 2022. The number of FIIs investors increased from 64 to 81 in the March 2022 quarter. whereas the promoter holdings went down to 18.5% in the March quarter of 2022 from 36.8% in March 2021. In the last quarter, promoters unpledged 5.16% of shares. The total pledge stands at 4.73% of promoter holdings.
This stock price went from ₹3.72 in Jan 2021 to ₹117 in Dec 2021, delivering a multi-bagger return of 3,045 per cent. The stock is currently trading 74.49% below its 52-week high. In the last one month, the stock plummeted by 50% and in the last 3 months, it fell by 64.97%. Further, over the last 6 months, the stock lost its value by 69.39%.
However, the stock returned 1680.3% over three years, compared to 49.58% for the Nifty Midcap 100.
Brightcom Group Limited provides digital marketing solutions to businesses, agencies, and online publishers worldwide. It operates through two segments, Digital Marketing and Software Development. The company connects advertisers with their audience across various forms of digital media to deliver messages to the right audience. The company was formerly known as Lycos Internet Limited and changed its name to Brightcom Group Limited in September 2018.
Gujarat Narmada Valley Fertilizers & Chemicals Ltd.
This is a small-cap fertiliser stock with a market capitalization of ₹9,030.6 crore. The company is into the manufacturing and selling of several fertilisers, including urea and ammonium nitro phosphate under the brand NARMADA.
The FIIs have raised their stake to 22.4% in the March 2022 quarter from a 10.01% stake in the March 2021 quarter. The number of FIIs investors increased from 204 to 243 in the March 22 quarter. Institutional investors have increased holdings from 23.87% to 27.61% in the Mar 2022 qtr. while the promoter holdings remained unchanged at 41.18% in the March 2022 quarter.
The stock made a 52-week high on April 5, 2022, but failed to hold on to this momentum and fell 36.29%. The stock gave a negative return of 14.46% in the last month. Further, the stock has dropped 27.68% in a year and 37.95% since the beginning of this year.
However, the stock has delivered a return of 31.86 per cent in the last six months and a return of 54.68 per cent in the last one year.
Restaurant Brands Asia Ltd
Foreign investors increased their stake in Restaurant Brands Asia Ltd by 11.4% during the March 2022 quarter. In the December quarter, FIIs' stake in the company was at 13.3%, which increased to 28.21 in the March quarter. Foreign investors increased from 69 to 80 in the March 2022 quarter. Mutual funds increased their holdings from 3.65% to 4.21% in the March 2022 quarter.
The stock has dropped 21.55 per cent since January 20, 2022. It has fallen 41.49% from its 52-week high of Rs. 189.7, which it reached on August 04, 2021.
The stock now trades at its lowest level since its market debut on December 14, 2020. However, the stock is still trading above its initial public offer (IPO) price of ₹60 per share. The company commands an m-cap of Rs.5,463.1.
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