Trent, NCC, Amara Raja, CAMS, VBL, Data Patterns: FPIs cut stakes in many retail favs in Q4

Foreign portfolio investors (FPIs), who sold Rs 1,16,574 crore worth domestic equities in the March quarter, were seen offloading shares of many retail favourites such as Tanla Platforms Ltd, NCC Ltd, Amara Raja Energy & Mobility Ltd, Computer Age Management Services Ltd (CAMS) and Trent Ltd among others, during the quarter, data compiled from corporate database AceEquity suggests. 

About 155 BSE500 companies have reported their shareholding details for the March quarter so far. Among them, 87 companies saw a decline in FPI holdings. Only five companies reported an increase in FPI stakes by 1 per cent or higher. In contrast, 30 companies saw FPIs reducing stakes by 1 per cent or more. The quarter was marked by brewing uncertainty after Donald Trump took oath as the US President and gave hints of imposing tariffs on trading partners to tame what he called 'unfair' trade practices. This led to dollar soaring and FPIs cutting exposure across geographies. 

In NCC, FPIs cut exposure by 434 basis points sequentially to 13.79 per cent in the March quarter against 18.13 per cent in the December quarter. This retail favourite stock saw retail ownership rising to 25.85 per cent in Q4 from 23.33 per cent in Q3.

Tanla Platforms Ltd saw FPIs cutting slashing stakes to 10.39 per cent in Q4 from 12.47 per cent in Q3, down 208 basis points. Retail ownership in this stock stood at 27.82 per cent at the end of March quarter. In another retail favourite CAMS, FPIs trimmed stakes to 55 per cent from 57.63 per cent, down 263 basis points sequentially. Trent Ltd and KEI Industries Ltd saw FPIs reducing stakes by 203 basis points and 392 basis points, respectively. Retail ownership in these stocks stood at 12-13.5 per cent at the end of March quarter.

"It would be interesting to see if the diminishing trailing returns of the Indian market would have a bearing on the investment behavior of retail investors or not. They have been price-agnostic investors for most of the past 3-4 years, emboldened by the high returns from the market for a period of time and tempted by expectations of high returns, based on the experience over FY2021-24," Kotak Institutional Equities said in a note. 

Aavas Financiers Ltd saw FPI cut stakes by 430 basis points. Crompton Greaves Consumer Electricals Ltd (down 408 basis points). Axis Bank Ltd, Sona BLW Precision Forgings Ltd.
Eternal Ltd (Zomato), Dr Lal Pathlabs Ltd and Max Financial Services Ltd saw FPI stakes falling 2.75 per cent to 3.39 per cent sequentially. 

Apollo Hospitals Enterprise Ltd, Varun Beverages Ltd and Trent Ltd saw 2-2.5 per cent drop in FPI holding for the quarter.

Emami Ltd, Home First Finance Company India Ltd, Hindustan Petroleum Corporation Ltd, Supreme Industries Ltd, Polycab India Ltd, ABB India Ltd and Blue Star Ltd saw over 150 basis points each fall in FPI holding. Emami Ltd, Home First Finance Company India Ltd, HPCL, Supreme Industries Ltd, Polycab India Ltd, ABB India Ltd, Blue Star Ltd, Vinati Organics Ltd, Data Patterns (India) Ltd and Amara Raja Energy & Mobility Ltd were some other stocks seeing FPI selling for the quarter.
 
Kotak noted that market returns even over three years are nowhere close to expected returns of retail investors, easily north of 15 per cent. 

"In fact, actual returns of most retail investors would be far lower than index returns given (1) the timing of investment; almost half of the money into mutual funds has come in CY2024 alone and (2) the choice of sectors and themes of investment; a decent chunk of money has gone into sectoral and thematic funds at the peak of those sectors and themes," it said.