Foreign Portfolio Investors (FPI) have been on a relentless selling spree in the Indian stock markets as the outflows have remained unabated for the ninth consecutive month in June. The FPIs have sold Indian equities worth over Rs 2 lakh crore so far this calendar year, as per data available on the exchanges.
The Russia-Ukraine war, increase in interest rates in the US as well as other economies, soaring global inflation, tightening monetary policies by central banks and expensive valuation of Indian shares have triggered this massive outflow of funds.
Bond yields have also spiked in the US and the UK which results in money flowing back as the FPIs seek safe returns on their investments. Moreover, hot money which was pumped by global central banks during the COVID-19 pandemic, is also set to flow back amid tightening policies.
The market has also reacted sharply with the Nifty falling over 9% so far in 2022. The benchmark index has declined more than 15% from an all-time high hit in October 2021.
However, there are many Indian companies that saw an increase in FPI ownership during the quarter ended March 2022.
Here is a list of Nifty50 companies in which FPIs raised their stake the most:
|Sr. No.||Company||FII holding as of March 31, 2022
|FII holding as of December 31, 2021
|Change in FPI Holding (%)||1-Year return (%)|
|5||Sun Pharmaceutical Industries||14.44||13||1.44||22.6|
(Data as on June 15, 2022)
The FPI ownership in Hindalco Industries increased by 2.86% to 28.85% in the quarter ended March 2022. FPIs held a 25.99% stake in the company at the end of December 2021. Promoters currently hold 34.64% stake in the company, while a little more than 65% ownership is with the public.
Hindalco Industries is the Aditya Birla Group’s flagship aluminium and copper manufacturing company. The stock, however, did not perform well as it declined more than 7% in the last one year amid broader market weakness. The stock hit a 52-week low of Rs 356.05 on June 15, 2022.
Pharma major Cipla has seen its FPI holding rise by 2.29% to 26.64% at the end of March 2022 as compared to 24.35% in the December quarter. The company’s promoters hold 33.63% stake and public hold 66.37% stake.
The shares of Cipla have remained stable amid the turbulent market condition. The stock has outperformed the Nifty Pharma index in 2022 rising 2.64% year-to-date (YTD) against a 13.67% YTD fall in the Nifty Pharma.
The diversified conglomerate ITC has been one of the most consistent performers recently. FPIs increased their stake in the company to 11.99% in Q4FY22 from 9.99% in Q3FY22. ITC is a 100% publicly owned company.
ITC share price has rallied more than 28% in the last one year and is up 21% YTD despite the weakness in the overall market. ITC, which has a presence across industries such as cigarettes, FMCG, hotels, packaging, paperboards, agribusiness, etc, had posted strong earnings for the quarter ended March 2022.
The steel major witnessed its FPI shareholding rising to 22.87% as of March 31, 2022, from 21.36% in the previous quarter. Its promoter and public shareholding remained constant at 33.92% and 66.08% respectively.
Tata Steel stock price has fallen sharply this year. The stock is down over 13% YTD, while it has declined 22% in the past 3 months. Tata Steel hit a 52-week low of Rs 950.65 apiece on June 15, 2022.
Sun Pharmaceutical Industries
The FPI ownership in pharma major Sun Pharmaceutical Industries increased to 14.44% in the quarter ended March 2022 from 13% at the end of December 2021. Promoters’ and public holding in the company remained unchanged at 54.48% and 45.52%, respectively.
Sun Pharma shares are down more than 2% so far this year. The stock has jumped over 110% in the last three years. Sun Pharma stock hit a 52-week high of Rs 967.05 on April 29, 2022, while it touched a 52-week low of Rs 652.70 on June 18, 2021.
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