Investments by foreign portfolio investors (FPIs) in the BSE-200 index declined to $291 billion in the March quarter, compared with $304 billion for the December quarter.
Increased selling by FPIs in banking, pharmaceuticals and automobiles sector stocks was visible during the March quarter, Kotak Institutional Equities said in a report.
FPI holdings in BSE-200 companies came down to 24.5% in March. On the other hand, domestic institutional investors (DIIs) increased their stake in sectors such as banking, utilities and pharmaceuticals. DII holdings in BSE-200 companies increased to 11.1% in the March quarter from 10.9% at the end of the December quarter, the domestic brokerage noted.
The report also said domestic mutual funds (MFs) showed a changed sectoral preference as they increasingly bought consumer and banking stocks while trimming down their exposure to technology and energy sector stocks. MFs considerably increased their stake in companies such as IDFC, Concor, Engineers India and Torrent Pharma, among others.
Life Insurance Corporation of India increased its stake in IDBI Bank, Oriental Bank of Commerce and Syndicate Bank and brought down its holding in companies like Indraprastha Gas, JSW Steel and ONGC, according to the report by Kotak.
FPIs bought nearly $1.2 billion worth Indian equities while DIIs sold R7,609 crore of Indian equities for the quarter ended March, Bloomberg data showed.
While FPIs in the December quarter sold equities worth $334 million, domestic funds bought R13,392 crore of Indian equities in the same period.