As Indian investors have overtaken FIIs in ownership, which stocks are they betting on?

FPIs were selling equities in Indian markets for the past nine to ten months, barring the latest buyouts for various reasons, including tightening of monetary policy in advanced economies and rising dollar and bond yields in the US.

However, after nine months of outflows, foreign institutional investors (FIIs) became net buyers indian stock In the last two months of July and August.

Energy sector stocks remain the biggest overweight (OWT) for domestic investors, while staples and utilities underweight (UWT) rose significantly from the previous quarter. Meanwhile, the financial stock remains the biggest OWT for DMF at 5ppt. OWT in consumer disk. Quarter-on-quarter (QoQ) also increased by 27bps.

“DMFs increased their UWT in Staples from 0.5ppt QoQ to 2.5ppt, which is a 4-quarter high. The relative weights in large financial and IT stocks were +/- 0.1 ppt respectively from the previous quarter, with OWT on financials now significantly 5.0 ppt. The UWT on materials was cut by 0.3 ppt, while the UWT on utilities was increased by 0.4 ppt,” Jefferies’ note said.

The June 2022 quarter saw most of its retail inflows through the MF route, while the direct inflows remained muted. Total retail (MF + direct) ownership in the overall market rose 0.2ppt sequentially to 17.8%. As markets fluctuated, direct participation in the market declined, as was reflected in non-institutional volumes, with the stock falling to average levels. strong flow from retail investor Through mutual funds The route continued with net purchases of $9.6 billion.

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