The Sensex experienced a roller-coaster ride in the July-September quarter, making gains of up to 10% followed by a loss of 7% during the period.
The Sensex experienced a roller-coaster ride in the July-September quarter, making gains of up to 10% followed by a loss of 7% during the period. However, it ended the quarter at 36,227.14 points, a gain of 2.3%. During these three months, foreign portfolio investors (FPIs) took contra bets on pharmaceutical and gas distribution firms. On the other hand, domestic institutional investors (DIIs) reduced their holding in gas distribution players while metal stocks were on their buy list, data from Edelweiss Securities showed.
FPIs also shunned large-cap private banks, two-wheeler companies and fast moving consumer goods (FMCG) stocks. DIIs increased their holdings in public sector banks, metal stocks and auto. Both FPIs and DIIs have reduced their holdings in Yes Bank and IndusInd Bank in the July-September quarter, while this period recorded a switch in holding; wherein FIIs reduced their holding in ICICI Bank and Axis in contrast to DIIs buying the same. With regard to pharmaceutical stocks, FPIs bought Aurobindo Pharma, Cipla and Biocon. “October saw domestic pharma growth accelerating to 12% vs 7.5% in September.
We expect growth to remain around 10% for the market going forward with large-cap outperforming. Most therapies saw acceleration with Diabetes, Dental and Urology the fastest growing,” said Jefferies in a report. Within auto, FPIs have shunned two-wheeler segment. The shift in the festival season this year has also impacted y-o-y volume growth across consumer-oriented segments.
“In two-wheelers, Royal Enfield volumes were particularly impacted due to a strike at one of their plants and weak retail demand in September,” said Kotak Institutional Equities in a report. The report added that overall retail demand was quite weak in September.
Stocks wherein both the categories in q-o-q raised their holdings include AU Small Finance Bank, Hexaware Technologies, L&T Infotech, Tejas Networks and Mahanagar Gas. In contrast, both the categories reduced their holdings in South Indian bank, Yes Bank, Jaipra-kash Associates, Balrampur Chini Mills and Dish TV India.