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Financial sector stocks were the most favourite sectors for foreign portfolio investors (FPIs) in the April-June period, while they sold pharmaceutical and technology stocks, according to a study by Kotak Institutional Equities.
However, FPIs are overweight on banking and technology sectors and underweight on consumers and industrials. They were underweight on ITC, L&T and SBI and overweight on HDFC, HDFC Bank and Axis Bank, the study revealed.
Automobile, banking and technology stocks accounted for about 58 per cent of FPI holdings in the June 2017 quarter.
FPIs bought equities worth around ₹14,500 crore during the period and FPI ownership (including ADR and GDR) in the BSE 200 Index increased to $388 billion in the June 2017 quarter from $368 billion in the March 2017 quarter, it said.
Shed stake in IDFC, RComFPIs sold large stakes in IDFC, Reliance Communications and Apollo Tyres and bought substantially in Brigade Enterprises, Equitas Holdings and Dalmia Bharat.
However, in percentage terms, FPI holdings increased marginally to 24.9 per cent (24.5 per cent), Kotak added.
On the other hand, domestic institutional investor holdings in BSE 200 companies increased to 12.2 per cent (11.9 per cent), it said, and added that DIIs bought banking, industrials and metals & mining stocks.
According to the Kotak study, LIC has increased stakes in Nalco, Vedanta (after merger of Cairn with Vedanta) and Crisil and decreased stakes in Adani Enterprises, PFC and Hindalco.
The top LIC holdings are L&T, Nalco, Tata Steel, Bank of India, Oil India, SBI and M&M.
MFs were overweight on industrials and banking sectors but underweight on consumer, technology and energy.
Overweights & underweightsBanking and financial institutions were overweight on ITC, L&T and ONGC but underweight on HDFC Bank, HDFC and Kotak Mahindra Bank; mutual funds were underweight on HDFC, RIL and ITC but maintained their higher holding in SBI, ICICI Bank and Federal Bank, Kotak Institutional said.
BFIs increased stakes in Nalco and Tata Chem, among others.
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