Foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) lapped up at least five BSE500 stocks from various sectors in the September quarter.
The quarter was marked by a strong 8 per cent rally in the BSE Sensex, with FPIs buying shares worth Rs 48,570 crore during the quarter. DIIs, on the other hand, were net buyers of equities to the tune of Rs 17,597 crore.
Top stocks
Shareholding data showed that paints maker Asian Paints, IT major Infosys, NBFC Shriram Transport Finance Company (STFC), the home-grown auto component major UNO Minda and a leading consumer wellness firm Zydus Wellness stood among the companies where both of the institutional categories raised their stakes in the quarter gone by.
Share price movement
Barring STFC (up 2.55 per cent), the other four stocks in the list are down up 11 per cent in 2022 so far. The BSE Sensex is up 2.5 per cent during the same period.
FPIs held a 50.65 per cent stake in STFC in the September quarter against 49.97 per cent in the June quarter. Mutual funds upped their stakes in the company to 6.71 per cent from 6.42 per cent sequentially.
In the case of Infosys, FPIs and mutual funds increased their stake to 36.19 per cent (from 31.72 per cent) and 17.59 per cent (from 14.98 per cent), respectively.
Stocks to buy
Analysts largely have a bullish view on a couple of these names post their Q2 results.
Infosys reported 11.07 per cent year-on-year (YoY) growth in net profit at Rs 6,021 crore for the quarter. The IT major posted a 23.34 per cent YoY rise in gross sales for the quarter at Rs 36,538 crore.
Brokerage Centrum Broking has an ‘Add’ rating on Infosys with a target price of Rs 1,598. “Infosys reported in-line revenues for Q2FY23 with a strong beat on margins. We expect revenues, Ebitda and PAT of Infosys to grow at 13.1 per cent, 12.9 per cent and 11.8 per cent over FY22-25E,” the brokerage said.
YES Securities is positive on Infosys with a target price of Rs 1,725. The brokerage said that Infosys reported strong financial performance for the quarter. The revenue growth was in line and the EBIT margin came in above estimates.
Asian Paints posted a 31.34 per cent growth in net profit on a 19.81 per cent rise in gross sales. STFC also posted a 38.16 per cent YoY rise in the bottom line on 13.13 per cent growth in gross sales.
Nirmal Bang Securities has an ‘Accumulate’ rating on Asian Paints with a target price of Rs 3,210 (Rs 3,440 earlier).
“Going forward, Asian Paints believes that the overall demand prospects remain good with an uptick in consumer sentiments during the festive season and upcoming wedding season, along with good monsoon. While the company saw some softening in input cost inflation at the end of Q2FY23, an uncertain geopolitical environment and strengthening of dollar could play spoilsport going forward,” Nirmal Bang Securities said.
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