In Q3FY19, Foreign Portfolio Investors (FPIs) sold equities worth Rs 19,100 crore and for the same period in the previous year FPIs bought equities worth Rs 16,900 crore. For the December 2018 quarter, banks, IT services and oil and gas were the top sectors that witnessed selling by FPIs, according to a report by Kotak Institutional Equities.
While mutual funds (MFs) invested around `32,200 crore in the quarter with banks, IT services, oil and gas and consumable fuels witnessing the most buying. “For Q3FY19, the ownership of FPIs in the BSE-200 index was steady at 23.6%. Mutual fund holding in the BSE-200 Index increased to 7.1% in the December quarter from 6.5% in the September quarter,” said Kotak Institutional Equities in a report.
According to Axis Capital, overall institutional holding for both FPIs and Domestic Institutional Investors (DIIs) in India Inc was all-time high of 34% (at $605 billion) in Q3FY19. Additionally, the DII holding was at 13%, which was at an all-time high. “In Q3FY19, FPI holding stood at 24% for National Stock Exchange (NSE) Nifty stocks and 17% for mid-caps, thus a blended 20% in BSE-500. FPI portfolio is valued at $362 billion, which is 43% of total float,” added Axis Capital in a report.
Additionally, holding in Nifty and CNX Midcap increased at 15% and 13%, respectively. The increase was mainly due to consistent flows into MFs, taking their holding in the BSE-500 to an all-time high of 7%.
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During the quarter, FPIs and DIIs increased their weightage particularly in private banks, information technology (IT) and fast moving consumer goods (FMCG). They decreased weightage in autos, PSBs, and telecom. FPIs raised their stake in IT and FMCG, but cut in autos. DIIs increased their stake in private banks, but reduced stake in autos and NBFCs. FPIs are overweight on autos, NBFCs, cement, pharma and under weight on banks, engineering, metals and oil.
While DIIs are overweight on PSBs, cement, engineering, FMCG, metals, pharma and power and underweight on private banks, NBFCs, oil and telecom against their Nifty benchmarks.
Owing to volatile market in 2018, with Nifty giving merely 4.03% returns – its lowest gains in three years – net outflows by FPIs were worth $5 billion in 2018. This was for the first time in five years. However, net inflows totaling to $40 billion till 2018 were infused into domestic mutual funds.