Feb 15, 2017 06:22 PM IST | Source: Moneycontrol.com

FIIs' stake in Nifty cos at 6-quarter low in Q3; Infosys dumped

Foreign institutional investors (FIIs) pared their equity holdings in frontline Indian companies during the December quarter, with market watchers blaming the trend on demonetisation.

FIIs' stake in Nifty cos at 6-quarter low in Q3; Infosys dumped
Moneycontrol Bureau

Foreign institutional investors (FIIs) pared their equity holdings in frontline Indian companies during the December quarter, with market watchers blaming the trend on demonetisation.

Data crunching by broking firm ICICI Securities shows that aggregate stake of FIIs in the 50 companies in the Nifty index fell by 70 basis points to 29.1 percent during the December quarter, from 29.8 percent in the preceding quarter. This is the lowest holding by FIIs in Nifty companies since the June quarter of 2015.

Market watchers expect foreign portfolio flows to be volatile in 2017 for two reasons: developed markets are looking attractive, and the India growth story is under a bit of a cloud, never mind the government’s upbeat outlook.

For two successive quarters, FIIs have been steadily selling shares of Ambuja Cement, Federal Bank, HDIL, Tech Mahindra and Dr Reddy’s. However, they have been buying Hindalco, Hero Motocorp, United Breweries, Tata Global and Reliance Industries for two quarters in a row.

In the December quarter, the top five picks of FIIs were LIC Housing Finance, RIL, ONGC, BPCL and United Breweries. The top five stocks on the sell list for the quarter included Tata Motors, HDFC, Infosys, Tech Mahindra and Coal India.




Infograph by Sanjit Oberai.

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