Foreign institutional investors (FIIs) hiked their exposure in Sensex companies in the December quarter even as markets touched new highs. However, retail investors and MFs booked profits in the quarter, reducing their holdings in 18 and 13 companies, respectively.
Of the 25 Sensex companies that have disclosed their shareholding pattern, FIIs raised their stake in as many as 18. In the quarter, FIIs pumped in $6.5 billion in Indian equities even as their domestic counterparts sold equities worth $4.7 billion.
L&T saw the sharpest q-o-q rise in FII holding, at 2.6 percentage points, to 17.85% at the end of the quarter. But the scrip came under selling pressure from fund managers and retail investors. MF holding in L&T fell 0.62 percentage points to 15.12% while retail investors cut stake by 1.11 percentage points to 20.87%.
Hindustan Unilever saw a marginal drop in FII holding. At the end of the quarter, FIIs held 14.83% as against 15.33% in the previous quarter. The scrip lost 9.05% in the quarter as inflation sapped consumer demand.
Meanwhile, experts feel FII flows could moderate in 2014. “With the Fed taper imminent, India could see a moderation in flows. This will particularly impact sectors or stocks where FII holdings are high,” said Motilal Oswal in a recent report. In CY13, overseas investors pumped in $20 billion in Indian equities, even as domestic institutional investors (DIIs) net sold $12 billion worth of equities.