Foreign Institutional Investors (FII) and Domestic Institutional Investors (DII) both increased their holdings in nearly half of Nifty 50 companies during the April-June quarter. Foreign institutions were net buyers of 27 companies or 54% of Nifty 50 stocks while domestic investors increased stake in 25 out of the 50 firms. During the April-June quarter, the Nifty 50 index gained 6%, underperforming the broader Nifty 500 index. However, on a year-to-date basis, the Nifty 50 has surged 13% so far.
FII and DII trades on Nifty 50
Foreign investors increased their stake in 54% of Nifty 50 companies during the previous quarter while domestic institutions hiked stake in 50% of the constituents. Tata Steel, Tata Motors, Cipla, NTPC, M&M, Axis Bank, and IndusInd Bank were the top stocks to see an increase of more than 1% in FII holdings during the April-June quarter whereas, SBI Life Insurance, Hero MotoCorp, Adani Ports, Tech Mahindra, BPCL, Kotak Mahindra Bank, and ITC were the top stocks to see a decline.
Domestic investors’ holdings in Nifty stocks increased the highest in SBI Life Insurance, Tech Mahindra, Hero MotoCorp, Tata Consumer, and Kotak Mahindra Bank. Meanwhile, Tata Steel, Titan Company, M&M, Infosys, and NTPC recorded declines in DII holdings.
FII and DII overweight compared to Nifty 50
Foreign Institutions are overweight in Eicher Motors, Mahindra & Mahindra, Maruti Suzuki, Axis Bank, HDFC Bank, IndusInd Bank, ICICI Bank, Kotak Mahindra Bank, HDFC, Reliance Industries, and TCS when compares to the benchmark index. Foreign investors have increased their holding in Nifty 50 companies over the last one year by 1.3%.
“In terms of absolute holdings, of the total FII holdings of $631 billion, Private Banks’ stake stands at the top with $141 billion in investment value,” the report said. The Top 5 companies that contribute 35% to the holding value are HDFC Bank ($56.8 billion), Reliance Industries ($51.7 billion), HDFC ($43.7 billion), ICICI Bank ($35.1 billion), and Infosys ($30.8 billion).
Domestic Institutional investors on the other hand, are overweight in M&M, Maruti Suzuki India, ICICI Bank, State Bank of India, Larsen & Toubro, UltraTech Cement, ITC, Divi’s Laboratories, Sun Pharma, Adani Ports, Tata Steel, BPCL, India Oil, Bharti Airtel, Coal India, and NTPC.
For DIIs, the top 5 stocks by holding value are Reliance Industries ($24.5 billion), Infosys ($20.1 billion), HDFC Bank ($19.7 billion), ICICI Bank ($19.5 billion), and ITC ($14.3 billion).