HDFC Bank, Grasim, ITC: Top stock holdings of FIIs, MFs in March 2024 qtr

With the NSE's Nifty 50 scaling unprecedented heights, crossing the 22,700 milestone earlier this month, shareholders in the index are making strategic adjustments to navigate the dynamic market landscape.

The surge in indices came on the back of a robust economy, optimistic forecasts from global brokerages and rating firms on economic growth outlook, and favourable investor sentiment.

In parallel, BSE's Sensex also reached unprecedented heights in April, surpassing the crucial milestone of 75,000 for the first time, further reflecting the buoyant market conditions.

The broader market indices, including Nifty Midcap 100 and Nifty Smallcap 100, also contributed to the upward trajectory. Notably, the Nifty Smallcap 100 continued its winning streak, reaching a new high of 16,822 points on April 24, marking the fourth consecutive day of ascent with a notable 0.80 per cent gain.

Shareholding pattern: Nifty, Nifty companies

IDBI Capital’s recent data revealed noticeable shifts in holdings among promoters, mutual funds (MFs), foreign institutional investors (FIIs), and domestic institutional investors (DIIs), capturing the attention of market observers.

The data highlighted promoters increased their holdings in the Nifty index by 0.85 per cent in March 2024 on a quarter-on-quarter basis.

Promoter holdings

Promoters displayed strategic manoeuvres, boosting their stakes in key players like Grasim Industries (up 0.31 per cent) and Bajaj Auto (up 0.11 per cent), while opting for a reduction in holdings for Bharti Airtel (down 1.08 per cent), Tata Consumer (down 0.86 per cent), M&M (down 0.75 per cent), TCS (down 0.65 per cent), Tata Steel (down 0.5 per cent) on Q-o-Q basis.

Mutual Fund holdings

Mutual Fund holding share in Nifty index rose 0.34 per cent in March 2024 on Q-o-Q basis. Mutual fund houses showcased a bullish sentiment, amplifying their investments in HDFC Bank (up 3.22 per cent), IndusInd Bank (up 2.04 per cent), ITC (up 1.9 per cent), and HDFC Life (up 1.31 per cent), while scaling back positions in NTPC down 1.19 per cent), Tata Motors (down 0.88 per cent), LTImindtree (down 0.84 per cent), ICICI Bank (down 0.79 per cent), and BPCL (0.76 per cent).

FII & DII holdings

In April, foreign investors pulled out Rs 10,558 crore from Indian equities, contrasting their bullish stance over the previous two months, NSDL data showed. In February and March, they had infused Rs 36,637 crore into the market, expressing confidence in India's growth trajectory.

According to data from IDBI Capital, FII holdings in the Nifty index decreased by 0.86 per cent in March 2024 compared to the previous quarter.

FPIs adjusted their positions by increasing exposure in some companies while reducing stakes in a few. They increased their exposure to BPCL (up 2.59 per cent), Bharti Airtel (up 1.66 per cent), ICICI Bank (up 0.89 per cent), NTPC (up 0.82 per cent), and M&M (up 0.79 per cent), albeit trimming positions in HDFC Bank (down 3.86 per cent), ITC (down 2.31 per cent), KMB (down 2.15 per cent), IndusInd Bank (down 1.96 per cent), and Asian Paints (down 1.43 per cent).

Meanwhile, domestic investors displayed resilience, augmenting their stakes in HDFC Bank, Indusind Bank, KMB, ITC, and Eicher Motors, while adjusting positions in NTPC, Tata Motors, BPCL, ICICI Bank, and Sun Pharma.

“Domestic Investor (DIIs) holding share in Nifty index increased 0.35 per cent in March 2024 on Q-o-Q basis,” IDIBI Capital said in a note.

DIIs increased their holdings in HDFC Bank, Indusind Bank, KMB, ITC, and Eicher Motors by 2.31 per cent, 2.17 per cent, 1.99 per cent, 1.74 per cent, and 1.44 per cent, respectively, on a quarter-on-quarter basis.

Conversely, DIIs reduced their stakes in NTPC, Tata Motors, BPCL, ICICI Bank, and Sun Pharma by 1.27 per cent, 1.25 per cent, 0.98 per cent, 0.76 per cent, and 0.69 per cent, respectively, on a quarter-on-quarter basis.