FIIs Pull Out ₹80,000 Crore From Top Bluechip Stocks As Domestic Funds Tighten Their Grip

Mumbai, November 13: Foreign Institutional Investors (FIIs) have taken out ₹80,000 crore by selling their investments in India’s key bluechip stocks in the September quarter. This marks the lowest ownership by FIIs in Indian equities in over a decade. At the same time, the investments by Domestic Institutional Investors (DIIs) have risen.

FIIs With Heavy Outflows in Bulechip Stocks

Among bluechip stocks, TCS saw the biggest outflow at ₹12,911 crore worth of shares. The ownership of FIIs in TCS has now declined to 10.3% from 11.5%. Reliance Industries saw outflows of ₹10,042 crore, with shareholding falling to 18.7% from 19.2%. In ICICI bank, FIIs sold shares worth ₹9,375 crore, lowering their shareholding to 45.60% from 46.85. Other major names in the list of 10 heavily sold stocks include HCL Tech, Kotak Mahindra Bank, Infosys, Axis Bank, HDFC Bank and Titan.

Foreign Ownership At 13-Year Low

By the end of September, FII ownership in NSE-listed companies fell to 16.71%. This is a 13-year low, from 17.05% in the previous quarter and from the peak of 20.71% in 2015. In valuation, FIIs now hold ₹74.20 lakh crore worth of Indian equities at the quarter end. This is a 4.4% quarter-on-quarter decline.

Select Stocks Attract Fresh Buying

After heavy selling in bluechip stocks, FIIs bought fresh shares of many companies. Key names included Yes Bank, Maruti Suzuki, Hindustan Unilever (HUL), Waaree Energies and AWL Agri Business. Yes Bank saw the highest inflow of ₹12,548 crore.

DIIs Provide Some Support to Indian Equities

Although FIIs lowered their ownership, Domestic Institutional Investors including mutual funds, insurance companies, pension funds and other institutions, now hold 18.26% of listed Indian equities. The combined stake of DIIs, retail investors and high net worth individuals (HNIs) has risen to 27.78%.

What’s Ahead for Indian Equities?

The Indian stock market saw a rally in October. However, it has corrected 3% so far in November. With FII ownership already at decades low and domestic institutions holding record ownership, the current structure is on the path of being more balanced. Analysts believe that the DIIs holding more of Indian equities is a good sign as domestic investors will play a larger role in market activity.

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