Foreign institutional investors (FII) pumped in $7.3 billion in Indian markets during the quarter ended March 2021, while domestic institutional investors (DII) pulled out $3.2 billion during the period.

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FIIs raised their stake in 64 percent of Nifty-50 companies on a QoQ basis, while DIIs reduced their stake in 62 percent of Nifty-50 companies, according to a report by Motilal Oswal. Foreign investors increased their stakes in 32 companies in the Nifty50.

FIIs increased weights in two-thirds of the sectors (Telecom, Metals, Consumer Durables, Real Estate, and Cement), while DIIs trimmed weights QoQ.

SBI Life Insurance, UPL, Hindalco, Tata Steel, Power Grid, Grasim, Hero MotoCorp, and Cipla were the top stocks to see an increase of more than 1 percent in FII holdings on a QoQ basis. On the other hand, IndusInd Bank, Tata Motors, and Bajaj Auto were the top stocks to see decline in FII holdings by more than 1% on a QoQ basis.

DII holdings in Nifty stocks increased the most in BPCL, Bajaj Auto, IndusInd Bank, and SBI Life Insurance – by more than 1 percent on a QoQ basis.

Power Grid, Grasim, Bharti Airtel, Hero MotoCorp, Hindalco, ICICI Bank, and Tata Consumer posted declines in DII holdings by more than 1 percent on a QoQ basis.

FII ownership in Nifty-500 up 160bp YoY

FII holdings in the Nifty-500 were back at pre-COVID levels in 4QFY21 – they declined a marginal 20bp QoQ, but increased 160bp YoY to 22.3%. DII holdings in the Nifty-500 were down 10bp QoQ / 50bp YoY to 14.2%, according to Motilal Oswal data.

FIIs post the highest QoQ change in Telecom, Metals, Consumer Durables; whereas, DIIs recorded only in Consumer, Healthcare, PSU Banks. In the Nifty-500, FIIs have the highest ownership in Private Banks (47.9 percent), followed by NBFCs (32.9 percent), O&G (23.1 percent), Insurance (22.2 percent), and Real Estate (21.5 percent).

DIIs have the highest ownership in Capital Goods (21.9 percent), Private Banks (20.4 percent), Metals (18.3 percent), Consumer Durables (17.8 percent), and PSU Banks (17.6 percent).

Using the Nifty-500 as the benchmark, DIIs are significantly overweight in Metals, PSU Banks, Capital Goods, Consumer, and Utilities and underweight in NBFCs, Private Banks, and Technology. Overall, the top-5 sectoral holdings of DIIs in the Nifty-500 account for 66 percent of the total allocations – BFSI (27.8 percent), Technology (11.5 percent), Consumer (10.7 percent), O&G (9.8 percent), and Auto (6.2 percent).