Top five stocks FIIs bought and sold recently5 min read . Updated: 26 Nov 2021, 10:50 AM IST
- FIIs have largely stayed on sidelines for the past few months, withdrawing money across emerging markets
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Last month, we wrote to you about the top stocks in which foreign institutional investors (FIIs) raised their stakes.
The list included names such as Aavas Financiers (7.7%), NALCO (6.6%), Voltas (5.1%), and Quess Corp (4.8%) among others.
Apart from the stocks we covered in the article, there are other such stocks where FIIs have raised stake in the September quarter.
Then there are stocks in which FIIs have reduced significant stake.
Let us take a look at which stocks institutional investors traded in the most during the September quarter…
Top Stocks Bought by FIIs in July-September 2021
Karda Construction: FIIs almost doubled their stake in this real estate company in the September 2021 quarter.
Interestingly, up until a year ago, FIIs held a negligible stake of 0.3% in the company. At present, they hold 12.1% stake.
FIIs have been increasing stake in this company for the past three quarters. And at a time when FIIs are increasing stake, promoters are offloading.
Promoter stake as of December 2020 was 65.2% and at present, it’s 48%.
Foreign investors have been bullish on this stock since the June quarter when it reported best ever quarterly performance.
Olectra Greentech: Institutional holding in Olectra Greentech increased by 4.8% and stood at 8.7% as of September 2021.
Olectra Greentech is one of the lesser known stocks in the electric vehicle (EV) space. Shares of the company are on a never ending rally this year.
They are up over 11x in the past year alone!
Recently, the company received orders worth ₹2.5 bn for supplying 100 electric buses to a State Transport Corporation as part of the FAME-II scheme of government of India.
Bullishness shown by FIIs can be attributed to the company's stellar financial performance. In the September quarter, the firm posted net sales higher, both in sequential and YoY terms.
The company’s net cashflow and cash from operations have also been on the rise.
Kiri Industries: In the September quarter, institutional holding in Kiri Industries increased by 4.7% and stood at 35.7%.
Just like the above two cases, promoters of the company have been reducing their stake.
Kiri Industries is engaged in manufacturing and selling of dyes, dyes Intermediates, and basic chemicals.
Xelpmoc Design and Tech: Institutional investors increased their stake by 4.5% in this IT company in the most recent quarter.
Meanwhile, promoters' stake decreased by 2.9% and stood at 54.4% with no shares being pledged by them.
Globus Spirits: Globus Spirits is primarily engaged in the business of manufacture and sale of Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), Bulk Alcohol hand sanitizer, and Franchise Bottling.
FIIs raised their stake by 3.9% in Globus Spirit in September 2021 quarter.
Just a week ago, the company declared its results. It reported lower capacity utilisation on a sequential basis which pushed the company shares 5% lower.
After being up for almost five months, shares of the company have corrected nearly 20% from their 52-week high of ₹1,514.
Apart from the above, here are other stocks in which FIIs raised their stake.
Do check out Equitymaster’s powerful stock screener for finding stocks recently bought by institutional investors.
Top Stocks Sold by FIIs in July-September 2021
Just Dial: FIIs reduced a significant stake in Just Dial in the September 2021 quarter. Their total holding declined by 12.1% and stood at 16.6% as of September 2021.
On the other hand, promoters of the company upped their stake by 16.4%.
Shares of Just Dial have been on a downtrend this quarter, falling from the highs of ₹1,138. It could be because FIIs have turned bearish on the stock.
Kirloskar Industries: After consistently holding around 10% stake in the company for the past two years, foreign investors have called it quits. They reduced almost their entire holding of 9.9% in the September quarter.
Earlier this month, the windmill power generation firm reported a net profit of ₹1,347 m during the September quarter, which was 79% higher than the year ago figures.
The company earns 98% of its revenues via its subsidiary (51% stake) Kirloskar Ferrous Industry.
Shriram Transport: FIIs reduced their stake in Shriram Transport by 5.9% during the September 2021 quarter.
However, they still hold a massive proportion of equity. 53.67% to be precise!
Shriram Transport has been one of the FII favourite stocks for quite some time now. Fidelity Investment Trust, Government Pension Fund Global, J P Morgan Funds, Vanguard International, and T Rowe Price are among its foreign investors.
In 2015, the Reserve Bank of India (RBI) had allowed FIIs/RFPIs to invest up to 74% of the paid up capital of Shriram Transport.
Tejas Networks: FIIs were bound to reduce stake in Tejas Networks given the sharp rally seen in the company’s shares this year.
During the September quarter, FIIs reduced their stake by 5.8% to 14.5% in the telecom cable company.
Note that FIIs have largely stayed on sidelines for the past few months, booking profits at every opportunity they get.: Capacite is an infrastructure-cum-real estate related company, with primary focus on real estate. It constructs building for most of the top players in the realty sector and also executes metro rail projects.
During the quarter under review, FIIs reduced their stake by 5%. Their total stake now stands at 7.3%.
Apart from the above, here are other stocks in which FIIs reduced their stake.
Note that FIIs have largely stayed on sidelines for the past few months, booking profits at every opportunity they get.
Not just India, they have withdrawn money across emerging markets (EMs).
The US Federal Reserve’s plans to taper the massive stimulus is the primary reason behind persistent FII selling. Sure, there are other reasons such as stretched valuations and rising commodity prices which in turn may have an impact on inflation.
Despite huge selling by FIIs, Indian share markets have been saved by significant fund inflows from retail and HNI investors. However, there can be volatility ahead given the sustained FII selling of ₹179 bn in November so far.
On the other hand, domestic investors have net bought shares worth over ₹130 bn in November so far.
The rising retail participation just goes on to prove one thing…even if FIIs remain bearish for some time now, the India growth story would remain intact.
How the FII buying and selling trend pans out in the quarter ended December 2021 remains to be seen.
We will keep you updated on all the developments from this space. Stay tuned.
(This article is syndicated from Equitymaster.com)
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