Based on shareholding data, the FPI holding of the benchmark Nifty 50 index increased 50 bps quarter-on-quarter (QoQ) to reach 22.9% during Q3 FY23. The upward trend in FPI buying in stocks such as Axis Bank, Hindalco, L&T, HCL Tech, Hindustan Unilever (HUL) and Infosys is driven by their relative performance, according to data analyzed by brokerage firm ICICI Securities.
However, FPI holdings, among other major indices, decreased by 20 bps to 13.4% for the Nifty Next 50 index during Q3FY23, while those for the Nifty Midcap and Nifty Smallcap indices increased by 40 bps to 14.2% and 12.9%, respectively .
The emergence of foreign portfolio investment (FPI) buying in IT stocks during the third quarter of FY2023 is the major trend. However, early trends for the calendar year 23 are indicating an increase in sales FPI in IT stocks.
The top-5 sectors with outflows from January 1 to 15, 2023 include financials ( 57 billion), IT ( 35 billion), energy ( 28 billion), discretionary consumption ( 25 billion) and Telecom ( 18 billion) while metals saw an inflow ( 25 bn) and other industrial to a lesser extent, according to the data.
“On an aggregate basis, FPI holdings in Indian stocks stood at 47.9 trillion as on 15 Jan 2023, which is 17% of the total market capitalization of the listed space in India. FPI holding Indian stock ICICI Securities said it hit a multi-year low of around 17% in Jun’22 and has since been hovering around that mark, which may indicate bottom formation in terms of their holdings.
Meanwhile, DII inflows for December 2022 remain positive with mutual fund (MF) inflows positive across most sectors except insurance and industry. Systematic Investments SIP inflows into Mutual Fund schemes continue to rise and now remain at a monthly run-rate of high. According to statistics 130 billion.
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