FPI increased stake by more than 1 percent in 30 companies out of BSE 200 including 10 stocks wherein they upped shareholding by 2.5-10.4 percent in July-September period.
The foreign portfolio investors (FPIs) were net sellers in the second quarter followed by big selling in October. But the indices still managed to close in the green for the quarter.
In fact, the Sensex and Nifty gained little over 2 percent driven by consistent buying support from domestic institutional investors who bought more than Rs 19,000 crore worth of shares in Q2FY19.
Mutual funds made most buying in banks, metals, mining and diversified financials during the quarter, and their holding in the BSE 200 index increased to 6.5 percent in the September quarter from 6.4 percent in the June quarter.
However, FPIs sold equities worth Rs 10,200 crore in the quarter ended September. Automobiles & components, IT services and metals and mining were the top sectors that witnessed FPI selling, Kotak Institutional Equities said.
FPI ownership in the BSE 200 index came down to 23.6 percent in the September quarter from 23.8 percent in the preceding quarter, the research house added.
During the quarter, the BSE 200 index gained half a percent, but BSE Midcap index lost 4.5 percent and Smallcap shed 10 percent.
FPIs were net sellers but that does not mean they bought nothing during the quarter. In fact, they increased stake by more than 1 percent in 30 companies out of BSE 200. Out of 30, there were 10 stocks wherein they raised shareholding by 2.5-10.4 percent in the July-September period.
AU Small Finance is the top company among these 30 stocks, wherein FPI increased stake by 10.4 percent to 20.6 percent in Q2FY19 followed by Indian Hotels (from 6.1 percent to 14.6 percent stake) and Mahanagar Gas (from 12.7 percent to 19 percent).
However, the biggest selling by FPI was seen in Vodafone Idea, wherein they slashed shareholding by a whopping 13.6 percent to 12.3 percent. It was followed by PC Jeweller, PNB, Manpasand Beverages, Vakrangee, Apollo Hospitals, Yes Bank wherein they cut stake by 3-5.5 percent during the quarter ended September 2018.
Kotak said top 40 stocks, which account for 75 percent of FPIs' equity portfolios in India, include HDFC Bank, HDFC, Reliance Industries, Infosys, TCS, ICICI Bank, Kotak Mahindra Bank, Axis Bank, ITC and IndusInd Bank.In the September quarter, MFs increased stake in AU Small Finance, Bharat Financial Inclusion and Mahanagar Gas while they reduced stake in Dewan Housing Finance, Kaveri Seed and Reliance Capital.