Foreign Portfolio Investors, after having pulled out Rs 61,973 crore from domestic equity markets in March, have been net buyers in all but one month this year. During the last quarter FPIs bought stocks worth Rs 46,000 crore and most of this buying was focused on, but not limited to, the banking sector. FPI holding in BSE 200 companies increased to $415 billion, up from $360 billion in the first quarter of this fiscal year, taking their share of ownership to 23.3%, according to brokerage and research firm Kotak Securities.
What did FPIs buy?
Sectoral trends reveal that FPIs were interested in buying bank stocks, followed by diversified financials, energy stocks, and IT services. The largest increase in FPI holding was for Bandhan Bank where foreign investors increased their stake by 12.8%. This was followed by Yes Bank where FPI stake increased 9.5%. Laurus Labs, Axis Bank, Emami, PI Industries, Vedanta, and Dr Lal Path Labs were the other top names. The largest spending by FPIs came towards ICICI Bank, worth Rs 13,648 crore, Followed by Rs 9,401 crore worth buying in Axis Bank, and Rs 8,745 crore buying Reliance Industries, the report said.
Stocks sold by FPIs included Bharti Airtel, Future Retail, Federal Bank, ITC, HUL, Indiabulls Housing, and Equitas Holdings.
Mutual Funds buying activity
During the last quarter, mutual fund houses increased stake in IT stocks, Telecom companies, Diversified financials, and banks. Bharti Airtel saw the largest buying by MFs in the July-September quarter, as they bought shares worth Rs 4,391 crore. Bandhan Bank was also on the receiving end of large swaths of MF cash with Rs 1,611 crore worth of buying. On the other hand, fund houses sold shares of HCG, Future Retail, Emami, Vedanta, and Eicher Motors.
Retail investors increased their stake in Future Retail buying shares worth Rs 1,286 crore in the second quarter of this fiscal year, increasing their stake by 19.3%. Indiabulls Housing was yet another beneficiary of retail buying worth Rs 1,153 crore. Yes Bank, Laurus Labs, Equitas Holdings, Federal Bank, and Vodafone Idea. Yes Bank was the biggest beneficiary of buying by retail investors, pumping Rs 7,220 crore in the July-September quarter, the report showed.
Meanwhile, retail investors reduced their stake in Escorts, HCG, Tata Power, SBI Cards, Glenmark Pharmaceuticals, and Page Industries, among other names.