Top five stocks in which FIIs sequentially raised their stakes
5 min read 27 Oct 2021, 11:00 AM ISTFIIs have largely stayed on the sidelines this month, booking profits at every opportunity they get, amid tapering concerns
PremiumSo far in 2021, foreign institutional investors (FIIs) have put in about ₹660.2 billion into the Indian share markets.
FIIs were net buyers in eight out of 10 months of this calendar year so far.
If we are to go by historical data, FIIs have been net buyers in the last eight Octobers out of 10.
But this October might tell a different tale.
Foreign investors are net sellers so far in October, having pulled out ₹38.3 billion so far.
They took out ₹23.3 billion from the equities segment, while the overall net outflow stood at ₹38.3 billion during 1-22 October.
Let’s take a look at Indian stocks where FIIs increased their stake sequentially. Please note, the data is as on 30 September 2021.
#1 Aavas Financiers (7.68%)
In August 2021, two promoters of Aavas Financiers offloaded shares worth ₹7.5 billion through open market transactions.
While promoters of the company have been offloading stake, FIIs are loading up.
The latest September 2021 shareholding data shows that FIIs increased their stake in the company by 7.68%.
Overall, FIIs held 39.81% stake in the company as of September 2021.
And it is not just FIIs. Even mutual funds are bullish on the stock. Mutual funds, too, increased their stake to 4.45% in the quarter under review.
Shares of the company have seen a good run in the past year, rising around 84%.
As demand picks up in the real estate sector, housing finance companies such as Aavas Financiers will be able to report higher earnings this festive season.
₹100 invested becomes…
To know more, check out Aavas Financiers’ latest shareholding pattern.
#2 NALCO (6.58%)
FIIs raised stake in National Aluminum Company (Nalco) from 8.64% in June 2021 to 15.22% in September 2021.
In fact, FIIs have increased their stake for the past four consecutive quarters now.
Ace investor Rakesh Jhunjhunwala is also a shareholder in this company. This is a fresh investment by the market veteran.
According to the shareholding pattern for September 2021, Rakesh Jhunjhunwala held 1.36% stake or 25,000,000 shares in the company.
Note that metal stocks are in focus for quite some time now as base metal prices are rising amid higher demand expectations.
Base metals have surged after European smelters became the latest casualties in a global energy crisis that’s knocking supply offline and heaping pressure on manufacturers.
Owing to this, shares of the company have seen a stellar run on the bourses rallying around 240% in the past year and around 25% in the past three months alone.
#3 Voltas (5.07%)
Latest shareholding pattern of Voltas shows that FIIs increased their stake in the company by 5.07% in the September 2021 quarter.
Overall, the FII holding in the stocks is 22.31%.
Mutual funds are even more bullish on the stock. Their holding in the company has not gone below 21% since the past eight quarters.
Two weeks ago, the company’s share price saw a spike after it announced festive season offers on air conditioners. But since then, there’s been a downtrend.
From trading at ₹1,338 on 18 October, Voltas currently trades at ₹1,177. It has a market capitalization of ₹395.1 billion.
Still, the company has performed well in the past year, delivering 73% returns.
Voltas, with its proud Tata legacy, is India’s undisputed leader in cooling products and the #1 room air conditioner (RAC) brand. The company is also an engineering solutions provider and a project specialist.
To know more, check out Voltas 2020-21 annual report analysis.
#4 Quess Corp (4.82%)
Quess Corp operates in the facility management services segment, and also deal with HR services, technology solutions, security, and cash logistics.
This is a niche segment with limited players and according to a global market research firm, the facility management services market in India is poised to grow by $14.98 billion during 2018-2022 at a CAGR of almost 18% during the forecast period.
In the quarter under review, Quess Corp’s promoters sold a part of their stake worth ₹4.5 billion.
Meanwhile, FIIs increased their stake to 22.14% in September 2021 from 17.32% in the previous quarter.
FIIs have been consistently increasing their stake in Quess Corp for past five quarters now.
A couple of months ago, the company had announced a new dividend policy under which it would be using around 33% of its free cash flows to return to its shareholders over three years.
Over the past one year, shares of the company have delivered 129% returns.
Quess Corp share price – 1 year performance
#5 HDFC Life Insurance (4.06%)
While promoters of HDFC Life Insurance have been on a selling spree since the past seven quarters, FIIs have increased their stake in six out of the past seven quarters.
From 21.07% stake in March 2020, FIIs currently hold 30.12% stake.
In the September 2021 quarter, FIIs increased stake by 4.06% in HDFC Life.
The private life insurer reported its quarterly result last week wherein its consolidated net profit declined 16% to ₹2.8 billion in the quarter ended September 2021.
Last month, the company announced 100% acquisition of Exide Life Insurance Company (subsidiary of Exide Industries) for a total consideration of ₹66.8 billion. The merged entity will have a 140,000 strong agent network as well as a consolidated AUM of ₹2 trillion.
Exide will bring nearly 40,000 agent advisers and a sizeable distribution network that can help HDFC Life extend its reach in South India where Exide Life has a strong market share.
Shares of the company have had a muted run on the bourses, delivering 18% returns in the past year.
Other stocks where FIIs raised stake in September 2021 quarter
Apart from the above, here are other stocks where FIIs raised their stake in the quarter under review.
22.94% 26.17% 3.23% 11.27% 14.29% 3.02% 21.86% 24.72% 2.86% 24.01% 26.76% 2.75% 7.29% 10.03% 2.74% 15.34% 17.95% 2.61% Company FII Holding June 2021 FII Holding Sept 2021 Change Ujjivan Financial HEG IIFL Finance Havells GMM Pfaudler Cera Sanitaryware
Source: Equitymaster
Persistent selling by FIIs. Here’s why…
FIIs have largely stayed on sidelines this month, booking profits at every opportunity they get.
Why?
There are concerns with respect to the tapering of the easy liquidity after US Fed hinted at a sooner than expected rate hike.
That’s not all. There are other concerns as well including rising crude oil prices, US bond yields, and challenges to the Chinese economy.
All this has kept FIIs from substantially investing in Indian share markets. It remains to be seen how the FII activity pans out in the coming months.
This article is syndicated from Equitymaster.com
