Foreign Portfolio Investors (FPIs) have lowered their holding in BSE-200 companies to USD 291 billion during the January-March quarter and heavy selling was seen in sectors like banking and pharma, says a report. In comparison, FPI ownership in the BSE-200 index was at USD 304 billion during the December quarter, according to the Kotak Institutional Equities report.
In percentage terms, FPI holdings in BSE-200 companies came down marginally to 24.5 per cent in the March quarter against 24.8 per cent in the preceding quarter.
A sector-wise analysis shows that heavy selling was seen by foreign portfolio investors including American Depository Receipts (ADRs) and global depository receipt (GDR) in banking, pharmaceuticals and automobiles sectors. Meanwhile, domestic institutional investors (DIIs) increased their stakes in sectors such as banking, utilities and pharmaceuticals.
“DII holdings in BSE-200 companies increased to 11.1 per cent in the March quarter from 10.9 per cent at the end of the previous quarter,” the report noted. Sector wise, FPIs are overweight on banking and technology sectors and underweight on consumer, industrials and energy space. Meanwhile, mutual funds are overweight on industrials and banking sectors; underweight consumer, technology and energy.
The analysis covered mark-to-market, India equity portfolios of USD 291 billion for FPIs (including ADRs/GDRs) and USD 49 billion for mutual funds. In the January-March quarter, the 30-share benchmark index Sensex has lost over 819 points which translates into a little over three per cent.
FPIs have sold maximum stake in Shriram Transport during the quarter under review 9.2 percentage points followed by LIC Housing Finance (8 percentage points).
Overseas investors also trimmed their holdings in ICICI Bank, Lupin, Tata Motors, Punjab National Bank, Jaiprakash Associates, DLF, Suzlon Energy, Cipla and India Cements.
On the other hand, Max Financial Services saw substantial sequential increase in FPI holdings - 8.4 percentage points, followed by SKS Microfinance and The Ramco Cement (4.3 percentage points each).