Check out the list of mid-cap stocks on FIIs’ buy radar in January-March

Indian stock indices have been in the consolidation zone after swinging back and forth over the last two months having tested the all-time peak early this year. The top indices are just 10% shy of the all-time high.

Foreign portfolio investors (FPIs) or foreign institutional investors (FIIs) had become more cautious about investing in India over the last one year. In fact, in the October-December 2021 quarter, they were net sellers in Indian equities pulling out over $5.1 billion the process.

In the first five months of this year, they had made their bearish sentiments apparent with net sales of securities worth $20 billion on the equities side alone.

We scanned through the list of companies that have disclosed their shareholding patterns to get companies where FIIs took a bullish stance and actually hiked their holding.

In particular, they hiked stake in 60 companies that have a valuation of $1 billion or more last quarter. In comparison, they had sold a stake in as many as 92 companies that have a valuation of $1 billion or more last quarter.

If we look at the broader set, we get a list of 48 mid-cap stocks with current market valuation of Rs 5,000-20,000 crore where they bought additional shares. This was a third more than the 36 mid-cap stocks where they hiked stake in the preceding quarter. However, it was still lower than the 57 stocks with that market value to attract offshore buyers in the three months ended September 30.

Top mid-caps in which FIIs raised stake

The largest mid-caps that saw offshore portfolio investors turn bullish during the three months ended March 31 include Grindwell Norton, Federal Bank, Emami, Blue Dart Express, BHEL, Gillette India, Central Bank of India, Godrej Industries and DCM Shriram.

FIIs also bought additional stake in Chambal Fertilisers, Alembic Pharma, IRB Infrastructure, Exide Industries, Capri Global Capital, Century Plyboards, J B Chemicals, Elgi Equipments, BASF India, KEI Industries, Alok Industries, City Union Bank, CESC, Gujarat Narmada Valley, Balaji Amines and Finolex Industries.

Lower down the order, there are names like EID Parry, Blue Star, EIH, Deepak Fertilisers, Akzo Nobel, Gujarat Ambuja, Bombay Burmah Trading, Birla Corporation, Granules India, Gujarat State Fertilizer, Jubilant Pharmova, JM Financial and Jindal Stainless.

Mid-caps in which FIIs bought 2% or more

As against the previous quarter when FIIs bought over 2% additional stake in just four mid-caps, they bought similar stake in five companies last quarter. These were Gujarat Narmada Valley, KEI Industries, Gujarat State Fertilizer, Deepak Fertilisers and City Union Bank.