FPIs buy ₹8,643 cr worth equities in Apr so far; HDFC twins, Tata Motors, ITC among top picks

Experts said, FPIs have increased their holdings in stocks like HDFC twins, Tata Motors, and ITC among others. The outlook ahead is also stable.

As per NSDL data, FPIs inflow stood at ₹8,643 crore in the Indian equities till April 21st.

Equities received far higher investment than compared to inflows of ₹778 crore in the debt market and ₹666 crore in debt-VRR so far in the current month. Unlike these, the hybrid market has witnessed an outflow of ₹125 crore.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services also cited NSDL data, saying, “FPIs turned buyers in April with net buy of stocks worth ₹6948 crore till 21st April.”

He also revealed that on the fortnight ending 15th April FPIs heavily bought financial stocks for ₹4410 crore. They were also buyers of automobiles and capital goods.

That being said, FPIs big bets are in stocks such as HDFC Bank, HDFC, Tata Motors, and also ITC. These stocks are giants in their respective segments such as banking, financials, automobiles, and FMCG.

Vijayakumar said, “There were huge delivery volumes in stocks like HDFC Bank, HDFC, and Tata Motors. It can be safely assumed that the bulk of this delivery buying was done by FPIs. FPIs have also increased their holding in ITC.”

Further, he added, “Stocks in which FPI holding is steadily rising are showing resilience even during market weakness. The only exception is IT stocks which also saw FPI buying, though marginal, in the first fortnight of April.”

IT stocks have been under pressure this month due to weak Q4 earnings of tech biggies like Tata Consultancy Services (TCS) and Infosys. Some buying was witnessed in the last two sessions of the last week due to stable Q4 numbers by HCL Tech. However, IT stocks have corrected drastically.

Last month (from April 17th to April 21st), Sensex edged up marginally by 182 points or 0.3%. However, the Nifty 50 was marginally lower compared to the previous week.

On April 21st, Sensex closed at 59,655.06 up by 22.71 points or 0.04%. Nifty 50 ended flat at 17,624.05.

In the month of March, FPIs were also net buyers to the tune of ₹7,936 crore in Indian stocks.

Year-to-date, FPIs are net sellers with an outflow of ₹17,567 crore in Indian equities. They sold heavily in January to ₹28,852 crore followed by an outflow of ₹5,294 crore in February. As of now, in 2023, FPIs are only buyers in March and mostly will end April on a positive note as well.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.