What Foreign Investors, Domestic Mutual Funds Bought And Sold In FY21

Foreign portfolio investors net pumped in Rs 2.74 lakh crore ($37.03 billion) in fiscal 2020-21, according to data by National Securities Depository Ltd. This is the highest net equity inflow by rupees since 1992-93. And about 45% of inflows came in the months of November and December.

Domestic mutual funds sold equities worth Rs 1.2 lakh crore ($16.26 billion) in FY21. Increased redemption pressure due to profit-booking and portfolio rebalancing led to increased selling by funds.

Equities saw net FPI inflows for 10 out of 12 months in FY21, while mutual funds’ net investments in stocks were positive in two.

FPIs increased stake in 67 companies in the year ended March. Domestic mutual funds raised holding in 28.

To be sure, foreign investors have pulled out Rs 13,000 crore ($1.75 billion) from equities in April and May so far amid the Covid-19 second wave.

But here’s a look at how foreign and domestic institutions increased or decreased stake in companies in FY21:

Foreign Investors

Foreign investors consistently increased their stake in 11 companies in the last year quarters, while paring their stake in six.

Investors ramped up their stake in Apollo Hospitals Enterprise Ltd. the most in percentage terms between June 2020 and March 2021, followed by Hindalco Industries Ltd., ICICI Bank Ltd. and Jubilant Foodworks Ltd.

June 2020 numbers would include the change in holdings from April-June.

Top Exits

Foreign investors pared their stake in Lupin Ltd. the most in percentage terms between June 2020 and March 2021, followed by Bosch Ltd., DLF Ltd. and Sun Pharmaceutical Industries Ltd.

Domestic Mutual Funds

Domestic mutual funds consistently increased their stake in six firms in the last three quarters, while paring their stake in 19.

Mutual funds ramped up their stake in Dr. Reddy’s Laboratories Ltd. the most in percentage terms between June 2020 and March 2021, followed by Bharat Forge Ltd., Bosch and Sun Pharma.

Mutual Fund Exits

Mutual funds pared their stake in Vedanta Ltd. the most in percentage terms between June 2020 and March 2021, followed by Tata Power Co., TVS Motor Co. and Hindalco Industries.

Divergent Trends

While domestic mutual funds have increased their stake consistently in Bosch and Sun Pharma in the last three quarters, FPIs have pared their stake in these companies.

On the other hand, foreign investors have consistently increased their stake in HDFC Bank, Hero Motocorp, Hindalco, ICICI Bank, Jubilant Foodworks, Power Grid Corp. of India Ltd. and TVS Motor Co. Domestic mutual funds have reduced their stake in these companies in the same period.