Foreign institutional investors (FIIs) have steadily increased their shareholding in 27 Indian companies for four consecutive quarters, showing continued confidence in select sectors despite broader market challenges. This trend was revealed by data compiled by the National Securities Depository Limited (NSDL) for the second quarter of the current financial year.
- FIIs net bought shares worth ₹13,970 crore in Q2 of the current financial year.
- FIIs raised stakes in companies like BHEL, Bank of Maharashtra, and Max Financial Services.
- Despite overall FII selling in previous quarters, select stocks saw consistent stake increases.
- Factors such as rising US bond yields and crude oil prices affected foreign investor sentiment.
- Prominent foreign portfolio investors include Vanguard and Government Pension Fund Global.
What is the recent trend in FII shareholding in Indian stocks?
In the second quarter of the current financial year, FIIs net bought shares worth ₹13,970 crore, marking a positive shift after significant selling in the previous quarters. Despite overall cautiousness, FIIs have consistently increased their stakes in 27 companies over the last four quarters, according to data from Ace Equity.
Which companies have seen the most consistent FII stake increases?
Notable companies with four consecutive quarters of FII stake increases include Bharat Heavy Electricals Limited (BHEL), Bank of Maharashtra, and Max Financial Services. For example, FIIs raised their stake in Bank of Maharashtra to 6.5% in Q2 from 2.35% in the same period last year. Similarly, Max Financial Services saw FIIs increase their stake to 9.94% at the end of Q2 from 9.53% in the previous quarter.
What factors have influenced FII investment behavior recently?
Several factors have dampened foreign investor sentiment toward Indian equities, including rising bond yields in the United States, depreciation of the Indian rupee, higher crude oil prices, domestic capital gains tax structures, and mixed corporate earnings. Additionally, a global shift of funds toward artificial intelligence and technology-heavy markets has affected emerging markets like India.
Who are the prominent foreign portfolio investors involved?
Major foreign portfolio investors (FPIs) holding stakes in these companies include Vanguard Emerging Markets Stock Index Fund, Smallcap World Fund, Vanguard Total International Stock Index Fund, Government Pension Fund Global, and Principal Funds - Global Emerging Markets Fund. For instance, Government Pension Fund Global owns a 3.07% stake in BHEL, while Fidelity Advisor International Capital and GQG Partners Emerging Markets Equity Fund hold stakes in leading airport operators.
How has FII shareholding changed in other notable companies?
Besides the top names, companies such as Indian Bank, Jammu & Kashmir Bank, ONGC, Apar Industries, CCL Products, Biocon, JP Power Ventures, Tata Technologies, LIC, Aether Industries, Tenneco Clean Air, IREDA, Titagarh Rail Systems, Indian Overseas Bank, Honeywell Automation, Lupin, Himadri Speciality Chemical, and SAIL have also experienced four consecutive quarters of increased FII stakes.
Overall, while foreign investors have been cautious due to global economic factors, their consistent stake increases in select Indian companies indicate targeted confidence in these sectors.
