5 Stocks Where FII/FPI Raised Stake In June Qtr: Should You Take Positions In Them?

While amid the interest rat hike, FPIs are known to decrease their positions from the Indian markets and have aggressively sold off their positions, here are some counters in which they are reported to raise stake.

So, while, there is a general consensus that an FII or FPI entering a scrip signals the optimism in the scrip and may be the scrip is offering some potential to rally going ahead. Likewise, here are some of the scrips in which foreign investors raised their holdings in the Q1 of Fy23.

Max Health

In the mid cap health care stock, FPIs have raised stake by 8.75% to 23.34% as of the June quarter. The stock has been an underperformer in the year so far. Based on the last quarter results, the firm sales have gained YoY on the back of low base.

Max Healthcare is provider of home health care services including Patient Care, Healthcare Services, and Hospitals.

As per the Trendlyne data, the stock has received 6 'Strong Buy' recommendations, while there is 1 'Buy' call for the stock. The stock last traded at a price of Rs. 370.4 per share.

Varun Beverages

This is another consumer discretionary stock on which FIIs have raised stake by a good 2.9% and their holding in the scrip as of June ended quarter is at 2.9%.

Varun Beverages Ltd is a franchisee bottler of carbonated soft drinks and non-carbonated beverages sold under trademarks owned by PepsiCo. The Company produces and distributes products, such as Pepsi, Diet Pepsi and Seven-Up.

Again as per the Trendlyne data, consensus estimate on the stock is for a 'Strong Buy' with 12 recommendations of the same.

The firm recently announced a bonus issue of 1:2 and for it the stock turned ex-bonus on 1:2.

Gujarat State Fertilizer and Chemicals

This is a small cap fertiliser segment scrip in which FIIs have raised their bets by 2.59% to now their stake being at 26.38%. Gujarat State Fertilizers & Chemicals Limited is engaged in the development of crop nutrition solutions. The Company operates through two business segments: Fertilizer Products and Industrial Products.

Again as per the Trendlyne data, of the 2 recos, 1 suggests a 'Strong Buy' for the stock.

The scrip last traded at a price of Rs. 136.75 per share.

Deepak Fertilisers

This is again a small cap scrip and into manufacturer of fertilizers. Its principal products/services include Nitrophosphate (Fertilisers), Complexes (Fertilisers) and TAN. In the scrip, FIIs have raised stake in the June ended quarter by 1.69% to now stand at 15.98%.

This stock again has a strong buy recommendation and has swiftly moved almost over 91% higher from its 52-week low price to last trade at Rs. 658.85 per share.

RHI Magnesita

In this cement sector scrip which is into the business of manufacturing and selling of refractories and monolithics, FIIs have upped their holding by 1.56% to currently at 2.2%. The company's last traded price is 532 per share.

Again of the 2 analyst recommendations, both have suggested a 'Strong Buy'.

Word of caution of FIIs buying a certain scrip:

There can be a host of reasons which might have pushed FIIs to buy into a stock, while the above listed stocks do have Buy calls together with FIIs raising bets in them. In no case should the above criterions be taken solely for as the buying parameters. Investors please note that FII may be buying in order to diversify or they are primarily known to create arbitrage positions, wherein they get long may be on equities and short on Futures.