Foreign Institutional Investors (FIIs) increased their stake in over 200 Nifty 500 stocks in the March quarter. This suggests that these stocks have gained favour among global investors.
After being sellers in the first two months of 2023, foreign institutional investors (FIIs) became net buyers in March and April. They invested around Rs. 7,963 crore in March and continued their buying trend in April, pouring Rs. 8,767 crore into Indian equities in the first two weeks of the month.
Data from Trendlyne showed that stocks in which FIIs raised majority stake in the March 2023 quarter include names like BLW Precision Forgings, Syngene International, Home First Finance Company India and Central Depository Services (India).
Sona BLW Precision Forgings, an automotive technology company, saw its foreign institutional investor (FII) holdings reach an all-time high of 24.7% in the March quarter. In the same quarter of the previous fiscal year, FIIs owned an 8.8% stake in the company.
In addition, the DIIs share also shot up aggressively in the March quarter, to 31.3% from 16.4% in Q4 FY22. In the December quarter, DIIs own a 24.4% stake in the company.
Among some key domestic institutional investors, Axis Mutual Fund raised its stake in the company to 6.29% in Q4 FY23 from 4.75% in Q3FY23. Similarly, Mirae Asset Large Cap Fund increased its stake to 5.75% in the March quarter, up from 4.53% in Q3FY23.
Recently in March, private equity firm Blackstone, which is one of the promoters of Sona BLW Forgings, offloaded its 20.50% stake in the company for approximately ₹4,917 crore via a block deal.
As a result of this transaction, the promoter's stake in the company reduced from 53.5% to 33%. Currently, domestic institutional investors (DIIs) own the largest stake in the company at around 31.3%.
The other stock where FIIs were bullish in the last quarter was Syngene International. The company is a contract research, development, and manufacturing organization catering mainly to global innovator pharma/chemical companies, offering integrated scientific services from early discovery to commercial supply.
During the March quarter, FIIs raised their holdings to 23.3% from 16.9% in Q3 FY23. Since Q4 FY22, FIIs have been increasing their stake, but the majority of the increase happened in the most recent quarter.
A similar trend was seen when it comes to domestic institutional investors, who increased their holdings to 10.7% in Q4 FY23 from 7% in the December quarter of FY23.
Likewise, Home First Finance Company India witnessed its foreign institutional investor (FII) holdings surge to a new peak of 15.7% in the March quarter. In comparison, during the December quarter, FIIs held only 9.4% of the company's shares.
While foreign investors continue to bet on the company, general shareholders have trimmed their stake to 42.4% in Q3FY23 from 50.6% in Q3FY23.
Next on the list was Central Depository Service India, the company saw an increase in FIIs holdings to an all-time high of 14.7%, an increase of 6% QoQ. Similarly, general shareholders also increased their stake in the company to 46.8% from 45.7% in Q3 FY22.
FIIs also increased their stake in Adani Ports & Special Economic Zone, NCC, Coforge, KPIT Technologies, V-Mart Retail, and Max Financial Services by 3% to 4.2% in the March quarter.
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