FIIs gung-ho on these BSE 500 stocks despite over Rs 1 lakh crore outflows in March quarter

Foreign institutional investors (FIIs), which offloaded shares worth Rs 1.10 lakh crore in Q4FY22, were also seen buying selective stocks on Dalal Street during the quarter gone by. The latest shareholding data so far showed that overseas investors have increased their stake in at least 93 companies in the BSE 500 index. Complete shareholding data is yet to be announced.

With a substantial rise, FIIs increased their stake in Restaurant Brands Asia to 28.76 per cent in the March quarter. They had a 17.35 per cent stake in the sequential quarter ended December 31, data available with corporate database Ace Equity showed. The company changed its name to Restaurant Brands Asia from Burger King India with effect from February 2, 2022.

Shares of Restaurant Brand Asia tanked nearly 29 per cent during January-March 2022, while the benchmark BSE Sensex inched higher by 0.54 per cent during the same period.

Among other major updates, FIIs also upped their stake in Indiabulls Real Estate (from 19.88 per cent to 25.61 per cent), Gujarat Narmada Valley Fertilizers (17.27 per cent to 22.39 per cent), Angel One (5.44 per cent to 8.96 per cent), KEI Industries (21.78 per cent to 25.22 per cent), Gujarat State Fertilizers & Chemicals (20.95 per cent to 23.79 per cent) and YES Bank (8.17 per cent to 10.97 per cent).

Commenting on the recent flows by institutional investors, Harshad Patil, executive vice president and chief investments officer, TATA AIA Health Insurance said, “The FII flows would be determined by the geopolitical issues and the global central bank monetary policy going forward as we have seen a global liquidity squeeze on the back of a hawkish US Fed and the Ukraine crisis. The domestic institutional inflows have been consistent on the back of sustained institutionalisation of retail money, which has offset the relentless FII selling to an extent. We believe this trend is likely to continue.”

Vishal Wagh, head of research, Bonanza Portfolio said, “FIIs continue to remain net sellers in India as the global risk-off sentiment and the geopolitical situation have added to concerns of inflation, higher bond yields, and global rate hikes.”

Data further highlighted that overseas investors raised their stake in some other companies including City Union Bank, ITC, BEML, Granules India, Bank of Baroda, Advanced Enzyme Technologies, NMDC, Century Plyboards (India), GMM Pfaudler, Solara Active Pharma, Hindustan Aeronautics, Power Grid Corporation of India and UTI Asset Management Company, among others.

Manish Jain, fund manager, Ambit Asset Management expects strong flows into India from FIIs largely because India continues to remain, one of the most attractive destinations in the world.

“Revival in private sector capex, steady growth in agriculture, formalisation and technological evolution are the building blocks that would propel India to the position of the third-biggest economy in the world. China’s growth is slowing and that would mean that India’s weight in emerging markets should increase. Historically, too, we have seen that whenever a strong FII outflow has happened, it has been followed by strong inflows for the next couple of years,” Jain added.

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