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FIIs increased their stake in these companies in Q4FY24, here’s why
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7 min read | Updated on June 11, 2024, 17:33 IST
SUMMARY
The general election in May 2024 has injected a degree of political uncertainty into the markets, causing apprehension among investors. Additionally, the uncertainty around the interest rate cut by the US Fed and the expensive valuations of Indian equity markets compared to other emerging economies have led to a pullback by FIIs in Q4FY24.
Stock list
Foreign Institutional investors jumped on to these stocks during Q4FY24
Amid weakening growth across developed markets, China +1 and fundamentally strong emerging economies, Foreign Institutional Investors (FIIs) after Covid 19 have shifted focus to countries like India.
The general election in May 2024 has injected a degree of political uncertainty into the markets, causing apprehension among investors. Additionally, the uncertainty around the interest rate cut by the US Fed and the expensive valuations of Indian equity markets compared to other emerging economies have led to a pullback by FIIs in Q4FY24.
During Q4FY24 (January-March), the domestic market saw a net outflow to the tune of ₹48,626.12, this grabbed the headline. However, this selling was absorbed by the Domestic Institutional Investors (DIIs).
| Date | Gross Purchase | Gross Sales | Net Purchase / Sales |
|---|---|---|---|
| Jan-24 | 3,65,393.17 | 3,62,078.70 | 3,314.47 |
| Feb-24 | 3,45,878.76 | 3,61,841.48 | -15,962.72 |
| Mar-24 | 3,24,457.56 | 3,60,435.43 | -35,977.87 |
FIIs holding across Indian equity markets hold a substantial stake and such substantial holding has a tremendous impact on the domestic equity markets.
FIIs play a significant role in the stock market, and an increase in their stake in a company’s stock is often viewed positively for several reasons:
- Gives confidence in the company’s future prospects and financial health
- FIIs interest also implies confidence in the company’s management and governance
- FII invests substantial amounts, which increases the liquidity of the stock making buying and selling of stock easier.
Even though at the broader level FIIs have shown selling at individual stock levels they have shown buying interest. FIIs have increased their stake across sectors in specific stocks having tailwinds, healthy financials and growth prospects.
| Name | Industry | FII holdings as on 31st December 2023 | FII holdings as on 31st March 2024 | % Change in FIIs holding |
|---|---|---|---|---|
| Aditya Birla Fashion and Retail Ltd | Textiles - Products | 14.15% | 19.50% | 5.35% |
| Sundaram Finance | Finance & Investments | 8.31% | 13.36% | 5.05% |
| Interglobe Aviation | Transport - Airlines | 18.70% | 23.66% | 4.96% |
| NCC | Construction | 23.89% | 27.33% | 3.44% |
| Name | Industry | FII holdings as on 31st December 2023 | FII holdings as on 31st March 2024 | % Change in FIIs holding |
|---|---|---|---|---|
| Mankind Pharma | Pharmaceuticals - Indian - Bulk Drugs & Formln | 6.74% | 9.87% | 3.13% |
| PB Fintech Ltd | Computers - Software - Medium / Small | 46.00% | 48.97% | 2.97% |
| Whirlpool India | Domestic Appliances | 3.64% | 6.47% | 2.83% |
| Union Bank of India | Banks - Public Sector | 3.97% | 6.75% | 2.78% |
| Macrotech Developers | Construction | 21.09% | 23.79% | 2.70% |
| NMDC | Mining / Minerals / Metals | 9.91% | 12.60% | 2.69% |
| BP L | Refineries | 14.21% | 16.79% | 2.58% |
| Lupin Ltd | Pharmaceuticals - Indian - Bulk Drugs & Formln | 16.11% | 18.29% | 2.18% |
| HDFC AMC | Finance & Investments | 17.99% | 20.01% | 2.02% |
| Phoenix Mills | Construction | 30.80% | 32.82% | 2.02% |
| Five-Star Business Finance | Finance & Investments | 54.28% | 56.06% | 1.78% |
| Suzlon Energy | Electric Equipment | 17.83% | 19.57% | 1.74% |
| Punjab National Bank | Banks - Public Sector | 3.10% | 4.82% | 1.72% |
| BHEL Ltd | Electric Equipment | 7.04% | 8.76% | 1.72% |
| Bharti Airtel | Telecommunications - Service Provider | 22.69% | 24.35% | 1.66% |
| Samvardhana Motherson International Ltd | Auto Ancillaries | 10.78% | 12.44% | 1.66% |
| TVS Motors | Automobiles - Motorcycles / Mopeds | 19.27% | 20.83% | 1.56% |
| KEC International Ltd | Transmission Line Towers / Equipment | 10.90% | 12.45% | 1.55% |
| EIH Ltd | Hotels | 3.71% | 5.25% | 1.54% |
| Kaynes Technology India | Electronics - Components | 12.71% | 14.19% | 1.48% |
| APL Apollo Tubes | Steel - Large | 29.25% | 30.69% | 1.44% |
| Astral Pipes | Plastics Products | 19.79% | 21.22% | 1.43% |
| Cholamandalam Investment and Finance Company | Finance & Investments | 24.73% | 26.00% | 1.27% |
| Indian Hotels Company | Hotels | 23.28% | 24.47% | 1.19% |
| NLC India Ltd | Power Generation And Supply | 1.21% | 2.39% | 1.18% |
| ABB India Ltd | Electric Equipment | 10.72% | 11.89% | 1.17% |
| Aditya Birla Capital | Finance & Investments | 9.77% | 10.92% | 1.15% |
| Brigade Enterprise | Construction | 13.73% | 14.86% | 1.13% |
| Cochin Shipyard | Miscellaneous | 4.11% | 5.23% | 1.12% |
| ICICI Bank | Banks - Private Sector | 43.65% | 44.77% | 1.12% |
| Carborundum Universal Ltd | Abrasives And Grinding Wheels | 10.63% | 11.72% | 1.09% |
| Hindustan Copper | Mining / Minerals / Metals | 2.05% | 3.13% | 1.08% |
| Tata Investment Corporation. | Finance & Investments | 1.20% | 2.25% | 1.05% |
| Century Textiles | Paper | 6.42% | 7.46% | 1.04% |
| Vedanta | Mining / Minerals / Metals | 7.74% | 8.77% | 1.03% |
| Jupiter Wagons | Engineering | 1.26% | 2.28% | 1.02% |
| BSE Ltd | Financial Services | 12.03% | 13.04% | 1.01% |
FIIs buying interest in Q4FY24 was largely observed in infra-related sectors like electrical manufacturers, power generation, construction and equipment manufacturers. Financial services also saw buying interest from FIIs during the period. Buying interest seems to keep in mind the continuance of infra-led growth and fiscal discipline policies by the upcoming government.
Electrical equipment manufacturers like Suzlon, BHEL Ltd, Kaynes Technology and ABB India 1-1.75% increase in stake by FIIs. The banking sector including PSU banks like Union Bank of India and Punjab National Bank also saw FIIs stake increase of 2.78% and 1.72%, respectively on account of healthier balance sheets. Private sector lender ICICI Bank saw a 1.12% increase in FIIs.
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