Foreign Portfolio Investors (FPIs) increased their exposure in 16 Sensex companies in April-June quarter, with purchase of shares estimated at over Rs. 17,000 crore at current valuation.
However, the holding of FPIs declined in 13 other blue-chips in the first quarter of current fiscal from the level seen in the preceding three months and data for one company was not available, showed an analysis of shareholding pattern of the Sensex constituents.
Overseas investors have picked maximum stake in Dr. Reddy’s Laboratories during the quarter under review - 6.58 percentage points. FPIs’ stake in Dr Reddy’s Laboratories rose to 42.58 per cent in three months ended June 30, 2016 from 36 per cent in March quarter.
FPIs’ stake in Axis Bank increased to 45.81 per cent in April-June quarter from 42.27 per cent in the preceding three months.
At current share prices, FPIs snapped up shares worth about Rs. 17,465 crore in a total of 16 Sensex constituents. At the same time, they sold shares worth about Rs. 14,389 crore in 13 blue-chip companies, resulting in a net inflow of Rs. 3,076 crore in all the Sensex firms together.
Besides, these investors raised holding in Infosys, Tata Consultancy Services, Hero MotoCorp, Tata Motors and Reliance Industries, among others.
On the other hand, FPIs’ holding dropped in State Bank of India (SBI), Bajaj Auto, Maruti Suzuki, Sun Pharmaceutical and Coal India.
Market experts said a slew of factors including hopes of good monsoon, several steps taken by the government to turn around the economy including relaxing FDI rules, approval of new mineral exploration policy as well as model law on shops and establishments prompted FPIs to infuse money in the Indian stock markets.
Foreign investors have invested more than Rs. 14,500 crore in the stock markets during the quarter under review, higher than Rs. 4,495 crore pumped in the preceding quarter.
