FII boosted its stake in 122 companies in the last four quarters

Ahmedabad. 29 January 2020, Wednesday

Foreign Institutional Investors (FIIs) have an important role to play in the Indian stock market. Despite the volatility in the market over the last four quarters, ie one year period, FIII has increased its stake in as many as 3 companies.

According to data available from FII's Year Ending Data, most of these 3 companies are operating in the small-midcap segment. Due to the volatility that has emerged in the market during the proposed period, FIIs have been abandoning bigcap and moving towards small-midcap.

Smallcap and Midcap stocks have been operating under pressure over the past two years due to various adversities. The shares of good companies in the sector have also come down. In view of this movement, FII has increased its stake in stocks of this segment over the past one year.

According to FII, the value of largecap stocks is high and these stocks are trading at high PE. In comparison, small-midcap stocks have increased their holdings in stocks in the sector to be reasonably available in the near future with a possibility of a serious improvement.

Of the eight companies that FII has invested in, eight of them - Modern India, Iron Exchange, Apollo Tricot, Housing Finance, Garden Reach, HDFC AMC, Amuse Network and ICICI Security - have more than doubled in one year. While 5 stocks have risen more than 5%.

However, on the other hand, 5 out of these 5 shares have a negative return. The stock of HIG, Dishman Carbogen, Graphite, Karur Vaishya, Pollen Milk has been extensively eroded. Thus, on the one hand, FII has benefited and on the other hand it is time to suffer losses.