DII Stake In Nifty-500 At Seven-quarter Low: Motilal Oswal Financial

According to India Strategy Report from Motilal Oswal Financial Services, in the Mar'21 quarter, Foreign Institutional Investors (FIIs) posted inflows of USD 7.3 billion, whereas Domestic Institutional Investors (DIIs) recorded outflows of USD 3.2 billion. Divergent sequential trends are seen between FII and DII purchases. FIIs increased weights in two-thirds of the sectors (Telecom, Metals, Consumer Durables, Real Estate, and Cement), while DIIs trimmed weights QoQ. FIIs increased ownership in 57%/64% of Nifty-500/Nifty-50 companies QoQ, while DIIs decreased stake in 56%/62% of Nifty-500/Nifty-50 companies QoQ. The FII-DII ownership ratio in the Nifty-500 remained at 1.6x in 4QFY21 (unchanged from the previous quarter), but was up from 1.4x in Mar'20.

In terms of absolute holdings, of the total Foreign Institutional Investors holdings of USD593 billion, Private Banks is at the top with USD139 billion in investment value.

In its latest India Strategy report, Motilal Oswal Financial Services dives deep into the ownership of various sectors/companies in the Nifty-500 to see how this has changed in 4QFY21.

FIIs raised stake in 64% of Nifty-50 companies on a QoQ basis, while DIIs reduced stake in 62% of Nifty-50 companies. 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% in FII holdings on a QoQ basis. 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% on a QoQ basis. Power Grid, Grasim, Bharti Airtel, Hero MotoCorp, Hindalco, ICICI Bank, and Tata Consumer posted declines in Domestic Institutional Investors holdings by more than 1% on a QoQ basis.