Foreign ownership in Nifty 50 stocks declined and Indian financial institutions increased their holdings in the quarter ended September 2015
Over the past few months, while foreign investors have been bearish on Indian stocks, retail investors, through mutual funds, have continued to put in money in stocks. For the six months period ended September 2015, Foreign Institutional Investors (FIIs) pulled out Rs19,024 crore from Indian equities while Domestic Institutional Investors (DIIs-Mutual Funds and Insurance) put in Rs47,411 crore in the same period. According to a research report from Nomura, as on 30 September 2015, FIIs reduced their holding in Nifty 50 (earlier know as CNX Nifty) stocks to 22.9% compared to 23.3% a year ago. DIIs increased their stake in Nifty 50 stocks to 11.3% from 10.4% last year, thanks to continued retail inflows. Below are some of the key findings of the research.
The top five Nifty stocks where FII holdings decreased were—Ambuja Cement to 20.0% (from 26.4% in June 2015), Cipla to 14.3% (from 18.3%), Sun Pharmaceuticals to 19.8% (from 23.8%), Hindalco Industries to 21.5% (from 24.9%) and Tata Steel to 9.2% (from 12.4%). FIIs did increase their stake marginally in certain Nifty 50 stocks. The top five Nifty 50 stocks where the FIIs increased stake were—BPCL to 19.7% (from 18.1%-June 2015 quarter), Zee Entertainment to 48.4% (from 47.7%), Wipro to 10.7% (from 10.3%), Asian Paints to 17.4% (from 17.0%), and Maruti Suzuki to 22.1% (from 21.8%).
The top five stocks where FIIs reduced their stake were not necessary the top stocks in which DIIs increased their stake. DIIs increased their stake in Tata Motors to 17.0% (from 13.5%), Ambuja Cement to 12.5% (from 9.5%), Indusind Bank to 10.8% (from 9.1%), Vedanta to 4.4% (from 2.7%), and GAIL to 13.7% (from 12.0%). The top five stocks where DII holdings decreased were—IDFC to 9.3% (from 12.3%), BPCL to 9.7% (from 11.1%), Tata Steel to 25.2% (from 26.0%), Dr Reddy Labs to 5.1% (from 5.8%) and ACC to 3.9% (from 4.2%).
Among the sectors, FII holdings in stocks of the Nifty Realty index decreased to 19% in September 2015, from 21% in June 2015. DII ownership too decreased marginally to 1.4% from 1.6% over the past quarter. In the pharma sector, represented by the Nifty Pharma index, FII holdings decreased to 23.6% from 25.3% in the past quarter. DII exposure to the sector increased marginally to 6% from 5.9% over the same period. FIIs bought more shares of Glenmark Pharma, Lupin, Glaxo Pharma and sold Cipla, Sun Pharma, Dr Reddy’s Labs. DIIs on the other hand bought more shares of Cipla, Cadila Healthcare, Glaxo Pharma and sold Dr Reddy, Divi’s Lab and Glenmark Pharma, Aurobindo Pharma and Lupin.
In the finance sector FII holdings decreased to 36.7% from 38.0% in the past quarter while DII ownership increased to 12.6% from 12.3% in the past quarter. FIIs bought more shares of Power Finance Corporation and sold Axis Bank, ICICI Bank, Punjab National Bank, Mahindra Finance, LIC Housing Finance, State Bank of India and IDFC. DIIs bought more shares of Power Finance Corporation, Mahindra Finance, ICICI Bank and Axis Bank and sold IDFC & Shriram Transport Finance.
The auto sector too witnessed a decline in FII ownership. FII holdings in the sector decreased to 20.6% in the September quarter from 21.5% in the June quarter, while DII ownership increased to 10.9% from 10.4% in the past quarter. FIIs bought more shares of Ashok Leyland, Maruti Suzuki, Amara Raja Batteries and sold Amtek Auto, M&M, Tata Motors, Exide, Bharat Forge. DIIs bought more shares of Tata Motors, Exide, M&M, MRF and sold Amtek Auto.
There was a marginal change in FII and DII ownership in the other sectors.