Equity markets witnessed some sharp upmove in the first half of the calendar year 2019 (CY19), first on the anticipation of the return of the Narendra Modi-led government to the power and then, hopes of desired reforms from the continuing government. The period did see benchmarks, S&P BSE Sensex and the Nifty50, touching their all-time highs of 40,312 and 12,103.05, respectively on June 4, 2019. However, the rally was short-lived as a couple of market unfriendly Budget proposals on July 5 triggered downward trajectory in the stocks.
That said, for the quarter ended June 30, 2019 (Q1FY20), the Nifty50 index has given a modest return of around 1.50 per cent while the S&P BSE Sensex of BSE has gained nearky 2 per cent. The S&P BSE 200 index has remained flat with just 0.38 per cent gain, ACE Equity data show.
During the period, overseas investors (FPIs) infused a total of Rs 31,700 crore in the equity market and FPI ownership in the BSE200 index increased to $444 billion in the June quarter from $433 billion in the March quarter, said a recent report by Kotak Securities.
Top sectors that witnessed FPI buying included financials, insurance, oil, gas and telecommunication services.
Among individual stocks, Gruh Finance, Mahindra Logistics and Godrej Properties saw substantial sequential increase in FPI holdings while they sold large stakes in YES Bank, Dish TV and DLF. Mutual Funds, on the other hand, increased their stake in Emami, Shriram Transport and Vodafone Idea and reduced stake in India Cements, Apollo Tyres and YES Bank, as per the report.
Top five stocks and sectors where FPIs and MFs increased or decreased their stake in the June quarter
Top five companies where FPIs raised their stake include Gruh Finance, Mahindra Logistics, Godrej Properties, Shriram Transport and SBI Life Insurance while top firms where FPIs decreased their stake during the quarter under review include YES Bank, DishTV, DLF, Escorts, Indiabulls Housing. Top five companies where MFs increased their holding were Emami, Shriram Transport, Vodafone Idea, BHEL and DCB Bank. On the flip side, they reduced their holding in companies such as India Cements, Apollo Tyres, YES Bank, Graphite India, PVR.
Top five sectors which caught FPIs' fancy were telecom, diversified financials, insurance, oil, gas & consumable fuels, electric utilities, capital goods. Information technology (IT) services, construction materials, banks, pharma, consumer durables are the top sectors that they were underweight on.
MFs' bought telecom, banks, pharma, consumer staples and construction materials during the said period whereas they lowered their investments in oil, gas & Consumable fuels, fertilizers and agriculture, electric utilities, gas utilities and IT services.