BackFIIs increased holdings in these sectors, stocks
In the Nifty-500, FIIs have the highest ownership in private banks
PremiumThe Nifty ended FY22 with 19% year-on-year (YoY) gain, marking another year of strong returns despite the multitude of challenges. Meanwhile, FIIs and DIIs posted flows of -$13.5 billion and +$11.5 billion, respectively, in Q4FY22.
Within the NSE-500, Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) purchases depicted divergent sequential trends. On a sequential basis, DIIs increased their holdings in all sectors except Capital Goods. Conversely, FIIs increased their holdings in only five sectors – Metals, Telecom, Utilities, PSU Banks and Chemicals, highlighted brokerage Motilal Oswal in a note.
In the Nifty-500, FIIs have the highest ownership in private banks, followed by NBFCs, Oil & Gas, Insurance, and Technology while DIIs have the highest ownership in Private Banks, Capital Goods, PSU Banks, Consumer Durables, and Automobiles.
On a quarter-on-quarter (QoQ) basis, FIIs increased their stakes in Metals, Telecom, Utilities, PSU Banks, and Chemicals. Conversely, they reduced their stakes in NBFCs, Insurance, Cement, Private Banks, Consumer Durables, Retail, Capital Goods, Automobiles, Real Estate, Technology, Consumer, Healthcare, and Oil & Gas.
BFSI’s (Private Banks, NBFCs, Insurance, and PSU Banks) underperformance has continued to reflect in FII allocation, at a multi quarter low. However, FIIs still remained significantly overweight in BFSI.
Overall, the Top 5 sectoral holdings of FIIs in the Nifty-500 accounted for 72% of total allocation – BFSI (34.2%), Technology (14%), Oil & Gas (12.2%), Consumer (6.7%), and Healthcare (4.8%).
The Top 5 companies that contributed 34% to the holding value were Reliance Industries ($62.9 billion), HDFC Bank ($51.5 billion), HDFC ($39.9 billion), ICICI Bank ($36.8 billion), and Infosys ($35.9 billion).
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