Turning cautious

After many quarters, foreign institutional investors (FIIs) have decreased holdings in more blue-chip companies than those in which they increased stake.

According to shareholding data for Nifty companies, foreign investors increased stakes in 20 companies, while paring stakes in the remaining 30. Their investments in the three months ended December 2014 also slowed to Rs 2,300 crore, compared with an average Rs 5,000 crore in the previous two quarters.

Risk aversion due to the slide in oil prices and financial trouble in France saw FIIs taking money off the table. The returns delivered by the Sensex in the December quarter, at only 3.3 per cent, was lower than the 4.8 per cent and 13.5 per cent for the September and June quarters, respectively.

Here's a list of top five stocks among the 50 Nifty components that saw the highest quarter-on-quarter addition and reduction in FII holdings during the December quarter: