Foreign institutional investors (FIIs), the primary driver of the rally in Indian equity market since March, have slowly pared their positions in several key stocks, including Wipro, IIFL Holdings, LIC Housing Finance, Gulf Oil and Monnet Ispat, among others. The S&P BSE Sensex climbed over 20 per cent since March and about 7 per cent so far in calendar 2016 supported by strong inflow of investment from FIIs. Overseas investors turned bullish on Indian stocks only since March. They have made net investment of around $7.3 billion (Rs 48,427 crore) in the equity market since March, NSDL data showed. Their net investment in stocks, which has already surpassed the highest level recorded in 2015, stood at $4.8 billion, or Rs 31,780 crore, during the January-July period, a media report said.
The overseas investors bought (higher purchases than sales) shares to the tune of about $1.9 billion (Rs 12,612 crore) in July alone, data with share depository NSDL showed. They bought more shares than they sold in value terms for 15 consecutive trading sessions during the month. On an overall basis, FII holding went up in 437 companies listed on NSE in last one year. On the other hand, FII holding dropped in 577 companies listed on the NSE. The average stock return of these companies stood at 18.32 per cent during the same period. According to data compiled by Prime Database, the top ten companies that saw biggest drop in FII holding in percentage terms in the last one year include names like LIC Housing Finance, Spentex Industries, Hinduja Foundries, LT Foods, IIFL Holdings, TBZ and Opto Circuits. Following is more list
Companies that saw the highest drop in FII holdings in percentage terms compared with the previous quarter include Chromatic India, Kaveri Seeds, Intrasoft Technologies, V-Mart, Wipro, Gulf Oil and Bharat Wire, among others. The drop in FII holding in the stocks mentioned could be just profit taking as some of the stocks have more than doubled investor wealth over the past one year.