FPIs buy Rs 31,700 cr equities in Q1: Kotak

Mumbai: Foreign Portfolio Investors (FPIs) bought equities worth Rs 31,700 crore in the quarter ended June 2019, broking firm Kotak Securities estimated.

Diversified financials, insurance, oil, gas and consumable fuels and telecommunication services were the top sectors that witnessed FPI buying.

FPI ownership in the BSE-200 Index increased to $444 billion in the June quarter from $433 billion in the March quarter. Domestic Institutional Investors (DIIs) sold companies in capital goods, electric utilities and oil, gas and consumable fuels sectors. FPIs and DIIs holding in the BSE-200 Index stood at 24.1 per cent and 13.5 per cent at the end of June 2019 quarter, it said.

FPIs effected highest increase in stakes in Gruh Finance, Mahindra Logistics, Godrej Properties while Mutual funds (MFs) had large stakes in Emami, Shriram Transport, Vodafone Idea and the Banking Financial Institutions (BFIs) had gained stakes in MMFSL, Magma Fincorp, Piramal Enterprises.

These three types of investors had also decreased their stakes in some stocks. FPIs reduced their stake in a big way in Yes Bank, Dish TV and DLF while the highest decrease by MFs were in India Cements, Appllo Tyres and Yes Bank. The BFIs lowered their stakes in BHEL, Indraprastha Gas and PowerGrid that can be the highest decrease in stakes.

The key sectoral changes happened during the quarter, while FPIs bought stocks of diversified financials, insurance and telecom sector, the MFs bought banks, pharmaceuticals, telecom and the BFIs sold stocks of capital goods, commodity chemicals and electric utilities.

The foreign investors were overweight on banks, diversified financials and IT services and underweight on consumer staples and capital goods. The MFs were overweight on banks, capital goods and electric utilities and underweight on consumer staples, diversified financials and IT services .