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Foreign Institutional Investors (FIIs) have reduced their exposure in fast-moving consumer goods (FMCG) companies such as Colgate, Dabur and Emami during the January-March period of FY’14 compared to the preceding quarter.
On the other hand, domestic institutional investors (DIIs) were mostly buyers in the consumer goods sector.
Of the 16 FMCG firms that were analysed, 11 companies saw a decline in their respective overseas investors’ holding in the three months ended March 31, 2014 over the preceding quarter, while four witnessed an increase in FIIs stake, according to a report by A C Choksi Share Brokers.
Besides, FIIs stake in ITC remains unchanged in January-March quarter from the preceding three months.
According to market experts, these counters have become very expensive in terms of valuation.
Apart from Colgate, Dabur and Emami, FIIs initiated fresh sell positions in Godrej Consumer Products Ltd (GCPL), Asian Paints, Berger Paints, United Spirits, Zydus Wellness, Marico, Hindustan Unilever Ltd (HUL) and GSK Consumer Healthcare, the report said.
In contrast, FIIs have offloaded their stake in Bajaj Corp, Nestle, Jyothy Laboratories and Britannia.
“...DIIs are selectively bullish on consumer stocks, while FIIs are reducing their holding in the sector. However, as FIIs remained consistent in increasing their holding in Britannia and Nestle, we deduce that they are bullish on processed food consumption story,” the report added.
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