Consumption-driven stocks stay strong as FII-heavy scrips falter

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Most of the stocks with high foreign shareholding were on a sharp declining trend once the market began to fall on Tuesday. Interestingly, two-thirds of the total investments that they have made since liberalisation have come in the years after the financial crisis.

This has led to fear that the high ownership they now account for leaves India vulnerable to a sell-off. Some of this seems justified during the recent correction, with most companies with high foreign ownership having fallen more than the benchmark indices. However, not every stock was in decline. Domestic demand-driven and companies with specific earnings triggers weathered the fall.