Top stocks: Here’s what the Big Boys bought between October and December
- Foreign investors have largely bought financial sector stocks and some new age companies like Nykaa & Policybazaar.
- Foreign investors have been selling index heavyweights like RIL, Infosys, Bajaj Finance and Adani Transmission during the same period.
- The Adani Group’s rout in the aftermath of the Hindenburg report has impacted foreign capital flows due to which FPIs are flocking to other ‘attractive’ markets and shorting Indian equities.
AdvertisementFlows from foreign portfolio investors (FPIs) into equities remained volatile in 2023, with Indian benchmarks underperforming global peers including US, UK, China and others. Foreign portfolio investors have so far sold equities worth $4.49 bn in 2023. Even though they have been selling India after China reopened, they are still showing some interest in select sectors. Business Insider India delved into what they were bullish on between October and December.
Foreign investors are largely buying financial sector stocks and some new age companies like Nykaa, Policybazaar. However, they have sold index heavyweights including RIL, Infosys, Bajaj Finance and Adani Transmission over the same period. Key names in banking and select technology services companies were their preferred picks. ICICI Bank, Axis and Yes Bank were their top bets during the quarter.
“FIIs are the largest non-promoter shareholders in the Indian market and their investment decisions have a huge bearing on the stock prices and overall direction of the market. It is thus time that complete details of all their holdings are made mandatory to be disclosed in India,” said Pranav Haldea, MD at Prime Database Group.
The Adani Group’s rout in the aftermath of the Hindenburg report has impacted foreign capital flows due to which FPIs are flocking to other ‘attractive’ markets and shorting Indian equities.
“FPIs are selling in India and buying in cheaper markets like China, Hong Kong and South Korea where valuations are attractive. This ‘short India and long other cheaper markets’ strategy has led to big underperformance of the Indian market, so far this year,” said Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services.
Highest buying and selling in October-December quarter by FIIs
Source: PRIME Database Group
|Top 10 buys by FIIs||Net buy||Top 10 sells by FIIs||Net sell|
|Nykaa||₹23,446 crore||Infosys||-₹3,458 crore|
|Axis Bank||₹9,561 crore||RIL||-₹3,368 crore|
|ICICI Bank||₹8,495 crore||Bajaj Finance||-₹2,669 crore|
|YES Bank||₹6,341 crore||Adani Transmission||-₹2,059 crore|
|LTIMindTree||₹6,081 crore||IndusInd Bank||-₹1,822 crore|
|L&T||₹3,238 crore||Paytm||-₹1,677 crore|
|HCL Technologies||₹3,164 crore||Asian Paints||-₹1,358 crore|
|Shriram Finance||₹3,015 crore||TCS||-₹1,308 crore|
|Macrotech Developers||₹2,670 crore||Tata Motors||-₹1,217 crore|
|PB Fintech||₹2,135 crore||Gail (India)||-₹1,027 crore|
While FPIs are busy selling Indian equities, Domestic Institutional Investors (DIIs) are saving the fort with strong support from mutual funds, insurance companies.
According to Haldea, a structural shift in relation to foreign and domestic investors has taken place in the Indian market.
Share of DIIs along with retail and high net-worth individual (HNI) investors reached another all time high of 24.44% as on December 31, 2022, from 24.25% as on September 30, 2022, as per data shared by PRIME Database Group.
The data highlights that over a 13-year period (since June 2009), FII share has increased from 16.02% to 20.18% while DII share has increased from 11.38% to 15.32%.
Highest buying and selling in Oct-Dec quarter by DIIs
Source: PRIME Database Group
|Top 10 buys by DIIs||Net buy||Top10 sell by DII||Net sell|
|Nykaa||₹10,137 crore||ICICI Bank||-₹6,693 crore|
|TCS||₹8,631 crore||Axis Bank||-₹2,304 crore|
|LTIMindTree||₹7,848 crore||L&T||-₹2,017 crore|
|RIL||₹6,118 crore||Coal India||-₹1,917 crore|
|HDFC Bank||₹5,149 crore||HCL Technologies||-₹1,876 crore|
|HDFC||₹3,550 crore||Power Grid Corp of India||-₹1,622 crore|
|Sheela Foam||₹2,734 crore||ABB India||-₹1,395 crore|
|Infosys||₹2,642 crore||Sun Pharma Industries||-₹1,371 crore|
|Samvardhana Motherson International||₹2,401 crore||Titan Co||-₹1,359 crore|
|IndusInd Bank||₹2,029 crore||NTPC||-₹1,337 crore|
SEE ALSO: FPIs offload equities worth ₹28,851 crore in January – financial services, oil & gas stocks account for 79% of it
India a long-term investment destination even among G-20 countries
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