HDFC, IndusInd Bank, RIL, Infosys, Tata Steel: Banks among 9 Nifty shares that saw FPI selloff in Q4

Foreign portfolio investors (FPIs) were on a selling spree in the March quarter. Data showed the institutional category trimmed stakes in 32 of 50 Nifty constituents during the quarter that saw them selling Rs 26,210 crore worth domestic equities. Nine index stocks in fact saw FPI stake reduction in excess of 100 basis points on a sequential basis, including three banking and financial stocks.

In the case of IndusInd Bank, FPI cut stake in the private lender for the second straight quarter. FPI holding in the bank fell 251 basis points to 42.04 per cent in March quarter compared with 44.55 per cent in the December quarter. FPIs held 46.90 per cent stake in IndusInd Bank as of September 2022.

Kotak Mahindra Bank saw FPIs trimming stakes by 149 basis points to 37.75 per cent from 39.24 per cent. FPIs have been reducing stake in this bank for at least five quarters. In Tata Steel, FPIs cut stake by 125 basis points to 20.62 per cent from 21.87 per cent.

Eicher Motors saw FPI trimming stakes to 28.63 per cent from 29.85 per cent, down 122 basis points sequentially. This was the second quarter of FPI selling on the counter.

In the case of Infosys, FPI holding got reduced to 35.08 per cent from 36.28 per cent QoQ. Asian Paints also witnessed a fall in foreign investor stake for the second quarter. The paints maker saw FPIs cutting stake by 120 basis points to 35.08 per cent from 36.28 per cent. Tech Mahindra, HDFC and Reliance Industries were three other Nifty stocks that saw FPI outflows for the quarter. For Tech Mahindra, it was at least the fifth straight quarter of FPI outflows; for HDFC, it was the second straight quarter; for Reliance Industries, it was at least the fifth straight quarter. The three firms saw 100-110 basis points cut in FPI holdings for the quarter.

Data sold FPIs have sold Rs 17,567 crore worth of equities in 2023 so far against Rs 1,21,439 crore for the Calendar 2022. That said, FPI selling this year got reversed since in March and April.

"Data on aggregate sectoral institutional flows activity during the market turmoil in Mar’23 indicates that FIIs were buying risk (high beta and value stocks) in the form of stocks related to cyclical and capital-intensive sectors," ICICI Securities said in a note.

Also read: Hindustan Zinc stock falls after muted FY24 volume guidance. Share price targets, analyst take & more 

Also read: ICICI Bank shares headed for 40% upside? Here are projections from NB, Equirus & 3 other brokerages