Check out the mid-cap counters that saw FIIs increase stake last quarter
Indian stock indices had scaled new highs last October and tested the levels a month ago, only to see a reversal since then. Lately, benchmark indices had seen a marked correction over fears of monetary tightening and an impending war situation in Ukraine. Now, the markets are consolidating around 5% below the peak level.
Foreign portfolio investors (FPIs), or foreign institutional investors (FIIs), have become more cautious about investing in India but quarterly shareholding data shows they pushed up their holding in over 200 listed companies.
This was similar to the previous quarter ended September 30, but the intensity of their stance was much muted with stake increases in just about 7% of the firms as against nearly 25% of the companies where they pushed their stake by 2% or more.
Among the 200-odd stocks, around 36 are mid-cap companies with current market valuation of Rs 5,000-20,000 crore. This was much lower than the 57 stocks within that market value range to attract offshore buyers in the three months ended September 30. It was also lower than 44 mid-caps where FIIs cut stake last quarter.
A sector-wise analysis shows there is a vast spread with smaller financial service companies, especially those related to brokerage and securities market; mid-size drugmakers and chemical producers; restaurant chains; engineering and industrial companies, besides electrical appliance makers among others that found foreign portfolio investors.
Top mid-caps where FIIs raised stake
Among the largest mid-caps that saw offshore portfolio investors turn bullish during the three months ended December 31, 2021, were companies such as Sumitomo Chemical, Aptus Value Housing, Sleepwell mattress maker Sheela Foam, CDSL, Suven Pharma, Hitachi Energy India, CAMS, Amber Enterprises, Fine Organic, UTI Asset Management, Angel One and Route Mobile.
FIIs also bought additional stake in BSE, V-Guard Industries, Aster DM Healthcare, Jubilant Ingrevia, Bharat Dynamics, Quess Corp, Chemplast Sanmar, HLE Glasscoat, SIS, Prince Pipes & Fittings, Rail Vikas Nigam and Sindhu Trade Links.
Lower down the order are companies like Orient Electric, TCI Express, Kalyan Jewellers, Glenmark Life Science, Kama Holdings, Nazara Technologies, Rites, MTAR Technologies, Greenpanel Industries, Barbeque-Nation, Mazagon Dock and Burger King India where the offshore portfolio investors put additional money.
CAMS, UTI Asset Management, Quess Corp and Amber Enterprises had also seen offshore investors bump up stake in the previous quarter ended September 30. In fact, CAMS had been in the hot spot of FII buying counter for the previous quarter ended June, too.
Mid-caps that saw FIIs buying 2% or more
As against the previous quarter when FIIs picked around two dozen firms where they bought over 2% additional stake, last quarter saw them backing around just four mid-caps with a significant stake purchase.
These include Route Mobile, CAMS, security services firm SIS and digital gaming venture Nazara Technologies.
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