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Distorted valuations and regulatory changes have prompted institutional investors to go after fewer stocks in the last one year or so, indicating polarisation among equities.
Numbers for the September quarter show that the percentage of investments by foreign portfolio investors (FPIs) in the top 20 stocks vis-a-vis other stocks on the NSE stood at 55.15 per cent. This is the highest since September 2013, data from Prime Database shows.
Mutual funds (MFs) had invested 44.5 per cent of their corpus in the top NSE stocks. This is the highest since March 2014.
Companies such as HDFC, HDFC Bank, Axis Bank,
