What FPIs And Mutual Funds Bought And Sold In Last Three Quarters
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What FPIs And Mutual Funds Bought And Sold In Last Three Quarters

While foreign investors have piled into equities, domestic mutual funds were net sellers of stocks in the last three quarters.

Foreign portfolio investors’ ownership of Nifty 50 companies rose to a five-year high as of December, according to a report by Motilal Oswal Financial Services. That came as markets rebounded from Covid lows to scale new highs, driven by an accommodative monetary policy, a decline in infections, improved performance of India Inc. in the quarter ended December and rollout of vaccines. The BSE100 Index jumped 35.2% during the period.

Despite some selloff in March, overseas investors have maintained their interest in Indian equities. In all, they have bought stocks worth Rs 2.63 lakh crore between April 1, 2020, and March 5, 2021, according to Bloomberg data.

Domestic mutual funds, however, sold equities worth Rs 1.28 lakh crore during the period—led by increased redemption pressures because of profit booking and portfolio rebalancing by investors.

Here’s a closer look at how both the trends played out.

Foreign Investors

  • Foreign investors increased their stake in 19 companies in each of the last three quarters.
  • At the same time, such investors have consistently pared their stake in 13 firms during the same period.

Investors ramped up their stake in Bandhan Bank Ltd. the most in percentage terms between March and December 2020, followed by Tata Consumer Products Ltd., Jubilant Foodworks Ltd., Kotak Mahindra Bank Ltd. and Axis Bank Ltd.

Top Exits

Foreign investors pared their stakes the most in percentage terms in Federal Bank Ltd. during the same period, according to Bloomberg data. That was followed by UPL Ltd., JSW Steel Ltd., Lupin Ltd. and Container Corp. of India Ltd.

Domestic Mutual Funds

  • Mutual funds consistently increased their stake in eight companies in each of the last three quarters.
  • Mutual funds consistently reduced stake in 22 companies during the period.

Mutual funds ramped up their stake in Dr. Reddys Laboratories Ltd. the most in percentage terms between March and December 2020, followed by Page Industries Ltd., Lupin Ltd., Rural Electrification Corp. and Bosch Ltd.

Mutual Fund Exits

Mutual funds pared their stake in Jubilant Foodworks Ltd. the most in percentage terms between March and December 2020, followed by Tata Consumer Products Ltd., TVS Motor Co., Larsen & Toubro Ltd. and Tata Steel Ltd.

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