FPIs turned net sellers again in the Indian equity markets by pulling out a total of ₹6,000 crore so far in October. With this, the total outflow by Foreign Portfolio Investors (FPIs) has reached ₹1.75 lakh crore so far in 2022, PTI reported quoting depositories data.
In September, FPIs withdrew over ₹7,600 crore from Indian stocks amid a hawkish stance by the US Fed and a sharp depreciation in the Indian rupee. In August, FPIs pumped in a little over ₹51,200 crore into the Indian equity markets. making it the highest inflow in 20 months.
For the first time in July, FPIs turned net buyers after nine straight months of massive net outflows, which started in October last year. After FPIs made a U-turn in July by investing nearly ₹5,600 crore, the Nifty rallied 8.60% and the Sensex gained 8.56%. In addition to that, the Indian market outperformed most of its global peers in the same month. July stands as one of the best months for the markets since August 2021 and November 2020, respectively.
Even though they were net sellers in the Indian markets between September and October, they raised their stakes in some Indian stocks at the end of the second quarter, data from Trendlyne showed.
Stocks in which FIIs raised majority stake in the September quarter include names like Computer Age Management Services, NCC Ltd, Varun Beverages, Rain Industries, and Gujarat Fluorochemicals.
FIIs raised their stake in Computer Age Management Services to 33.5% in September quarter from 29.3% in the June quarter. With this, FIIs hold the biggest stake in the company. Mutual funds hold a 14.6% stake in the company. Promoters currently hold 19.9% of the shares in the company. while regular shareholders held a 32% stake in the company.
The other stock where FIIs were bullish in the last quarter was NCC. Foreign investors' stake in the company stood at 12.8% in the September quarter as against 9.7% in the June quarter. while the public holds the largest stake in the company with 52.1%.
Rain Industries saw its FIIs holdings rise from 15.7% in the June quarter to 17.2% in the September quarter. FIIs have been bullish on the company for a long time.
The promoters own 41.1% of the shares in the company. Mutual funds also raised their holdings to 2.3% in Q2FY23 from 1.6% in Q1FY23.
Further, FIIs have raised their stake in Varun Beverages to 25% in the September quarter from 23.9% in the June quarter. The number of FII investors increased from 385 to 491 in the same period.
Gujarat Fluorochemicals was another stock where FIIs increased their stake to 5% in the September quarter from 4.1% in the previous quarter.
Furthermore, in the Q2FY23, DIIs increased their holdings in stocks including Affle (India), Radico Khaitan Ltd, CreditAccess Grameen Ltd, Bharat Heavy Electricals, and KNR Constructions Ltd.
Domestic institutional investors held 59.9% of the stake in Affle (India) Ltd in the September-ending quarter, an increase of 52.4% from the June quarter.
DIIs have been bullish on Radico Khaitan for a long time. This is clear given their increased exposure to the stock over the last four quarters. In Q2FY23 they increased their stake to 22.9% from 20.3% in the June quarter, and in the September 2021 quarter, they held 18.7%.
The DIIs' stake in CreditAccess Grameen stood at 12.7% in the September quarter as against 10.8% in Q1FY23, up by 1.9%.
In the September quarter, KNR Constructions saw an increase in the DIIs holdings from 33.3% to 34.6%. Bharat Heavy Electricals was the other stock in which the DIIs increased their stake to 14.5% from 12.6%.
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