Foreign portfolio investors (FPIs) sold equities worth Rs 22,500 crore in the Indian market in the September quarter, as concerns over weak macroeconomic environment and uncertainty around the US-China trade talks and Brexit kept the risk appetite low.
There was a shift in the preferences of stocks and sectors as well.
According to a Kotak Institutional Equities report, Lemon Tree Hotels, Varun Beverages and Shriram Transport saw the highest increase in the stake by FPIs, while Mindtree, Yes Bank and LIC Housing Finance saw the biggest drop in stake.
Diversified financials, IT services and oil, gas and consumable fuels sectors witnessed FPI selling. FPI ownership in the BSE-200 Index declined to 23.8 percent in the September quarter from 24.1 percent in the previous quarter.
On the other hand, domestic institutional investors (DIIs) bought banks, consumer staples and oil, gas & consumable fuels sectors. "DIIs holding in the BSE-200 Index increased to 14 percent in the September quarter from 13.5 percent in June quarter," Kotak Institutional Equities said.
The FPIs were overweight on banks, diversified financials and IT services; underweight on consumer staples and capital goods.
Mutual funds (MFs) increased stake in Lemon Tree Hotels, Mahanagar Gas and ICICI Lombard but reduced stake in Ujjivan Financial Services, Mindtree and Shriram Transport.
FPIs were overweight on HDFC, HDFC Bank and Kotak Mahindra Bank, while MFs were overweight on ICICI Bank, SBI and NTPC. BFIs were overweight on ITC, L&T and TCS, said the report.
FPIs were underweight on ITC, L&T and SBI. MFs were underweight on Reliance Industries, HDFC and Hindustan Unilever. BFIs were underweight on HDFC Bank, HDFC and Kotak Mahindra Bank.
MFs were overweight on banks and capital goods sectors and underweight on consumer staples and diversified financial sectors.
On the other hand, bank and financial institutions (BFIs - including banks, financial institutions and insurance companies) increased stake in Marico, Jubilant FoodWorks and Maruti Suzuki, while reducing stake in Equitas Holdings, Crompton Greaves Consumers and Jagran Prakashan.
Retail investors increased stake in Yes Bank, Ujjivan Financial Services, Jubilant Life Science and reduced stake in Alkem Laboratories, Indian Bank and Natco Pharma during September quarter, said Kotak Institutional Equities.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.