Home Share Market Foreign Investors reduce holding in Nifty 500 to multi-quarter low, DIIs improve stake in these sectors

Foreign Investors reduce holding in Nifty 500 to multi-quarter low, DIIs improve stake in these sectors

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Foreign Institutional Investors (FII) continued to trim their stake in home inventory markets within the January-March quarter, pulling out $13.5 billion from home shares and lowering their holdings within the Nifty 500 to a multi-quarter low. Data sourced by brokerage agency Motilal Oswal confirmed that FII holding in Nifty 500 was down 40bp sequentially and down 210bp on 12 months to twenty.3% within the final quarter of the earlier fiscal 12 months. On the opposite hand, Domestic Institutional Investors (DII) had been web consumers and pumped in $11.5 billion into equities throughout the identical interval. 

Analysing FII possession

Analysts at Motilal Oswal mentioned that FIIs decreased their possession in 60% of Nifty 500 firms on-quarter foundation and 72% of Nifty-50 firms throughout the identical interval. “The FII-DII ownership ratio in the Nifty 500 declined to 1.4x in the January-March quarter,” they added. The ratio has come down from 1.6x within the January-March quarter of the monetary 12 months 2020-21. Analysts added that BFSI’s (Private Banks, NBFCs, Insurance, and PSU Banks) underperformance has continued to replicate in FII allocation — right down to 34.2% (at a multi-quarter low) within the Nifty-500 as of March 2022, from 45.3% in December 2019 and 40.1% in March 2020.

FIIs holdings now recommend that overseas buyers have assigned the very best weightage to non-public banks at 20.2%, adopted by Technology (14%), Oil & Gas (12.2%), NBFC (11%), and client sector(6.7). The lowest allocation is in the direction of PSU Banks at 1.2%, adopted by Real Estate Consumer Durables, Cement, and Insurance. FIIs elevated their holdings in solely 5 sectors final quarter, these included — Metals, Telecom, Utilities, PSU Banks and Chemicals.

Domestic Institutional Investors improve holdings

During the January-March quarter, DIIs raised their stake in 58% of Nifty 500 firms and 72% of Nifty-50 firms, when in comparison with the earlier quarter. In the Nifty 500 universe of shares, Private Bank shares have the very best weightage assigned to them by DIIs at 15.1%, adopted by Technology (11.2%), Oil & Gas (10.4%), and the buyer sector at 8.8%.

“In the January-March quarter, DIIs increased their weights in the following sectors: Oil & Gas (+80bp), Utilities (+60bp), Metals (+40bp), Private Banks (+30bp), Telecom (+20bp), PSU Banks (+20bp), Real Estate (+10bp), and NBFCs (+10bp), while they reduced their weights in Technology, Healthcare, Cement, Automobiles, Capital Goods, Consumer, Retail, Consumer Durables, and Insurance, sequentially,” analysts mentioned. The high 5 shares owned by DIIs, by holding worth had been Reliance Industries Ltd ($33 billion), ICICI Bank ($24.5 billion), HDFC Bank ($21.8 billion), Infosys ($18.2 billion), and ITC ($17.5 billion).

Source: www.financialexpress.com”