As many as 33 stocks returned over 10 percent in the last year. These include stocks like Muthoot Finance, ICICI Lombard, Atul, JustDial, PNC Infratech, Varun Beverages & Aarti Industries
Foreign institutional investors (FIIs), which have pulled out a little over 14,000 cr Rs from the cash segment of Indian equity markets so far in the current month, are still net buyers since July 2018.
FIIs which were mostly net sellers last year turned tables in 2019 by pouring in more than Rs 40,000 cr Rs in Indian markets largely on expectations of continuity of policy and a stable government at the center
Foreign investors, who poured money into Indian equity markets in the Ist 4 months of 2019, have turned net sellers since then. They have pulled out more than 2,000 cr Rs in May, less than 1,000 cr Rs in June, and over 14,000 cr Rs so far in July.
After Modi 2.0 government's presentation of the Union Budget, the sentiments turned sour, which was tabled earlier in July. The government's proposal of increasing tax surcharge for foreign entities, which are registered as non-corporates, weighed on sentiment.
The proposal dampened the sentiment as the move could well impact almost 40 % of the FPIs, said a report quoting industry estimates. Finance Minister Nirmala Sitharaman ruled out any possibility of a rollback, which only extended the selling pressure on D-Street.
FIIs are selling into equity markets, but they are also selectively picking stocks consistently, which is a +ive sign.
Be aware of other parameters:
A list of stocks in which FIIs are raising stake can at best be considered as a filter before selecting stocks, because not every stock in which FIIs raised stake gave +tive or double digit returns.
Out of 129 stocks in which FIIs raised the stake, 79 stocks gave
(-)tive returns. And, out of 79, 65 stocks fell 10-80% in the last year – which includes names like Eros International, IIFL, Vodafone Idea, PNB Housing Finance, Jain Irrigations, Oil India, etc. among others.
Investors should understand the risk involve when they hold stock for long time. these parameters change for foreign investors. In their respective portfolio focus on diversification and maintaining quality stocks. Here quality, means quarter-on-quarter Growth.
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