Overseas investors have upped their stakes in mid and small cap stocks during the first quarter of 2010 while reducing their exposure in bluechip companies. As per the latest shareholding data filed with the stock exchanges by a total of 203 companies, foreign institutional investors (FII) have increased their stakes in 118 companies while offloading their holding in as many as 80 companies.
In fact, during the period, BSE mid-cap index and small-cap index have gained 1.31% and 1.67%, respectively, outperforming the BSE Sensex gain of just 0.36%. FIIs have invested over Rs 19,800 crore during the period.
RL Narayanan, V-P, institutional business at Bonanza Portfolio, said, ?With large cap stocks already generating returns of 100% in the recent rally, investor focus is shifting towards mid and small cap stocks?.
