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New Delhi: Foreign portfolio investors (FPIs) have been on a selling spree since FY22 and the last quarter of fiscal year was no exception. Rather, it saw outflows from overseas investors getting intensified during the January-March period.

However, their selling was offset by solid buying from domestic institutional investors (DIIs) who have increased their holding in 72 per cent of Nifty50 companies, suggests Motilal Oswal’s India Strategy report.

DIIs have apparently been the saviour for domestic equity market when FPIs cut their stake in 36 constituents of the index, according to the report.

On a quarter-on-quarter (QoQ) comparison, FII holding in HDFC Life Insurance dropped more than 4.1 per cent, followed by a 3 per cent fall in HDFC and a 2.3 per cent drop in Dr. Reddy’s Labs.

Mahindra & Mahindra, Maruti Suzuki, HDFC Bank, ICICI Bank, IndusInd Bank, Ultratech Cement, Wipro, Tech Mahindra, HCL Technologies, and HUL were the other companies where FIIs holdings dropped between 1-2 per cent.

FIIs also trimmed their stake marginally in counters like TCS, Reliance Industries, SBI, Axis Bank, SBI Life Insurance, L&T, Bajaj Finserv, Britannia, Nestle and Divi’s Labs.

The selling pattern shows FIIs have turned bearish on India’s biggest names from IT, financials and auto sectors. They also booked profits in select FMCG, pharma and industrial names.

On the contrary, Hindalco, Cipla, ITC, Tata Steel, Sun Pharma, Power Grid, ONGC, UPL, and BPCL were the top stocks that saw an increase of more than 1 per cent QoQ in FII holdings.

According to depositories data, FPI investors have pulled out more than Rs 1.10 lakh crore from the Indian equity market between January-March 2022 period. In March only, they sold shares worth Rs 41,123 crore.

On the other hand, DII holding, among Nifty50 names, increased the most in Power Grid, where they increased their stake by 7.6 per cent. It was followed by Dr Reddy’s labs and HDFC where DIIs upped their stake by 2.6 per cent and 2.4 per cent, respectively.

Tata Steel, Maruti Suzuki, HDFC Bank, ICICI Bank, IndusInd Bank, Kotak Mahindra Bank, UltraTech Cement, Kotak Mahindra Bank and Bajaj Finance were some of the other key counters where DII increased their stake between 1-2 per cent.

Domestic institutions have remained bullish on IT heavyweights such as Wipro, Tech Mahindra, Infosys and HCL Tech where they increased their stakes by up to 1 per cent. However, TCS witnessed a marginal decline in their ownership.

Coal India, Divi’s Labs, Cipla, Tata Consumer, Apollo Hospitals, HUL, Nestle, ITC, Shree Cements, Asian Paints and SBI are some of the other key names where DIIs increased their stake, according to the report.

According to the pattern, DIIs have remained buoyant in sectors like industrials, FMCG, pharma and healthcare, beyond auto, energy and banking names.

On the contrary, Britannia, Hindalco, BPCL, and ITC were top stocks that witnessed a decline of more than 1 per cent QoQ in DII holdings.


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