FII

Analysis by Nikhil Kamath reveals that aggressive selling by FIIs during market crises often precedes gains in the Nifty 50. Historical patterns show domestic investors performed better than FIIs during such sell-offs, indicating FII timing may not always be accurate.

Expert view: Chockalingam Narayanan from ICICI Prudential emphasises a strategic approach favouring value investments. He highlights the importance of selecting resilient companies poised for growth despite market volatility.

After $60 billion in FII outflows since September 2024, signs of easing selling emerge as outflows slowed post-US-Iran ceasefire. Indian equities have been volatile, but improving macros and attractive valuations may prompt a shift in FII sentiment.

In a recent filing, Swiggy disclosed that foreign investment is at 49.76%, with domestic ownership exceeding 50%. This clarification confirms no changes in management, voting rights, or ownership status after a failed shareholder vote for amendments to its Articles of Association.

Zee Media Corporation raised ₹19.12 crore by allotting 3 crore equity shares to Sun India Opportunities Fund after the investor exercised conversion rights on warrants. This increases the company's share capital to ₹65.54 crore, with the stock rising 1% post-announcement.

FPI exodus: The Financial Services sector recorded the highest FPI selling during the first half of June, with net outflows of ₹11,263 crore. The Oil, Gas & Consumable Fuels sector followed closely, witnessing outflows of ₹10,488 crore, according to NSDL data.

On 19 June, FIIs purchased equities worth ₹31,442.87 crore and sold shares worth ₹26,583.80 crore, leading to net inflows of ₹4,859.07 crore.

India’s stock market has witnessed a significant transformation as DIIs usurp the dominance of FIIs. With record inflows from disciplined SIPs, this shift heralds a new era in investment dynamics, powering resilience amidst global uncertainty.

Expert view: History suggests that foreign flows typically return when valuations become more compelling. That can happen through a market correction, through a period of earnings catching up with prices, or through some combination of the two, says Pradeep Gupta.

Foreign portfolio investors have broadened their investments in Indian equities, increasing the number of stocks held despite a decline in overall ownership from 20% to 15% in the last decade, driven by selling in large-cap stocks amid global investment shifts post-Russia-Ukraine conflict.