This year, Indian equities witnessed ferocious selling by foreign institutional investors (FIIs) amid the ongoing global economic concerns. FIIs have sold shares worth Rs 2.75 lakh crore in the Indian equity markets this year till December 28. However, despite the heavy foreign investor selling, Indian stock markets have been able to withstand this onslaught and are currently trading near all-time highs. This outperformance of Indian equities is mainly attributable to robust domestic macros and bottom up stock picking by market forces. This, while apparently foreign investors (FII and FPIs) have majorly sold their holdings in Indian stocks. In contrast to this trend, in some selected stocks FII and FPIs have also turned buyers and increased their stake during the quarter ended September 30, 2022 and performed portfolio rebalancing.
Data available with Ace Equity showed that as many as 15 stocks, listed in the BSE, saw FIIs increasing their stake from anywhere between 5 per cent to 26 per cent in the last quarter. Many market watchers consider FII buying as a bullish signal for selecting a stoc, and, in the past, stocks where FII increased their stake have really performed well and provided decent returns to the investors.
Max Healthcare Institute, with a quarterly increase of 25.9 per cent by foreign investors in Q2FY23, has a total foreign investor (FII and FPI) ownership at 49.27 per cent. The stock is trading at Rs 438 and its current market valuation is at Rs 42,552 crore. It is followed by Zomato, which has registered 15.6 per cent growth in the FII holdings in the September quarter, amounting to 25.5 per cent total foreign investor stake in the food delivery platform. Zomato shares are trading at Rs 60.20 apiece and m-cap is Rs 51,482 crore. Ushdev International is at third spot with 12.2 per cent increase and total FII ownership of 15.2 per cent. This penny stock has market cap of Rs 61 crore.
At the fourth place is Salasar Techno Engineering, which has recorded 11.3 per cent surge in FII ownership in Q2, thus taking their total stake to 12.2 per cent. Salasar Techno Engineering has a market valuation of Rs 1,610 crore and the stock is currently trading at Rs 51. By registering 9.5 per cent increase in FII stake in Q2, Parag Milk Foods is ranked fifth in the list. It has 13 per cent foreign investor’s ownership and current market capitalisation is Rs 1,217 crore with the stock trading at Rs 103.
Can Fin Homes is at sixth spot with FII raising stake by 9.3 per cent in the previous quarter. It had no FII stake earlier and the housing finance company has market valuation of Rs 7,007 crore. It is followed by Lime Chemicals, as this micro-cap stock has attracted 7.4 per cent FII ownership during the September quarter. At number eight is Sakar Healthcare, with an increase of 7.4 per cent in Q2, taking its total FII holdings to 16.1 per cent. Sakar Healthcare has m-cap of Rs 405 crore.
Hinduja Global Solutions is at ninth place with a 7.3 per cent increase in foreign investor’s ownership during Q2, which has reached a total of 15.4 per cent. Its current market valuation is Rs 7,011 crore. Choice International is at tenth spot with 7.1 per cent increase in FII stake in Q2, while total holding is now 14.1 per cent. Current m-cap of Choice International is Rs 2,425 crore.
Some other stocks witnessing significant FII interest are Lancer Containers Lines whose total FII holding is 20.5 per cent, including 6.9 per cent increase in Q2FY23. Filatex India’s FII ownership increased by 6.4 per cent in the past quarter, taking total FII stake to 20.5 per cent. FIIs raised their stake in Triveni Turbine by 5.3 per cent in Q2, taking total FII ownership to 22.3 per cent. HDFC Asset Management Company’s FII holdings surged 5.1 per cent in Q2FY23, taking total FII stake to 12.3 per cent. In Mastek, FIIs increased stake by 5 per cent in the September quarter, taking total FII stake to 13 per cent and Infosys’ FII ownership increased 4.5 per cent in Q2, taking total FII ownership to 36.2 per cent.
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