Foreign investors are betting big on these 20 BSE500 firms

Foreign portfolio investors, who poured more than Rs 1 lakh crore in the domestic equity markets in Q1FY24, have raised substantial stake in a couple of firms from across sectors, including healthcare, automotive, finance and chemicals, among others. Data available with Ace Equity showed that foreign investors increased their stake in more than 250 companies that are part of the BSE 500 index.

However, they substantially increased their stake in Max Healthcare Institute to 59.80 per cent in the June quarter, from 51.96 per cent in the preceding quarter. Likewise, they lapped up additional stake in Sona BLW Precision Forgings (31.68 per cent from 24.69 per cent), Shriram Finance (55.36 per cent from 49.78 per cent) and HDFC AMC (to 12.99 per cent from 7.50 per cent).

While sharing his views on global investors, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “India is the largest recipient of FPI flows year-to-date (YTD) among emerging markets. The selling in China continues. FPIs continue to invest in financials, automobiles, capital goods, realty and FMCG. FPI buying in these sectors have contributed hugely to the surge in prices of stocks in these sectors and the Sensex and Nifty scaling record highs.”

“The concern, however, is the rising valuations. At high valuations some negative triggers can lead to a sharp correction,” he added.

FIIs also raised stakes in Chemplast Sanmar to 11.45 per cent from 7.41 per cent. The other companies where foreign investors raised stakes were Cyient, RBL Bank, The Indian Hotels Company, Glenmark Pharmaceuticals, Patanjali Foods, Dixon Technologies (India), Axis Bank, Aditya Birla Capital, Ceat, Vedant Fashions, Hindustan Aeronautics, Timken India, L&T Finance Holdings, NCC and KPIT Technologies by 2–4 percentage points during the quarter under review.

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