Indian stocks where mutual funds or FIIs invest indicate their bullishness on the scrip. FII investments can be in the form of investment trusts, mutual funds, pension funds etc. FII activity is more pronounced in developing economies like India as they offer higher opportunities of growth and investment.
Why FII/FPI or Mutual Fund Buying Into A Stock Is Important?
For a retail investor, their (FIIs or domestic funds) participation or investment into individual equities or into the Indian market as a whole provides for an estimation of a broader market trend.
1. ITI Ltd:
ITI Ltd. also referred as Indian Teleph. Ind. Ltd is a small cap stock with a market capitalization of Rs. 11,347 crore as of June 30, 2021. This PSU enterprise is now catering to newer technologies in the telecommunication space. The clientele of the company includes BSNL, MTNL as well as the defence sector.
Now as there is a push towards Aatmanirbhar mission with government putting curb on imports of these equipments, the prospects of the company have been only improving. Also, the centre is also promoting the company for its different procurements into the area.
Further as the nation forays into 5G network it is enabling its testing by manufacturing 5G enables devices.
Now coming to the FII and MF participation into the scrip, for the June ended quarter, 0.02% stake has been picked by FIIs while MFs have also bought into the company by 0.01% which for both the institutional investors for the previous period ended March 2021 stood at 0 percent.
Nippon India ETF Nifty Midcap 150 was the highest buyer in the stock of ITI.. Other mutual funds that have invested into the stock of ITI include Aditya Birla Sun Life Nifty Midcap 150 Index Fund Regular Growth.
This is another small cap company commanding a market cap of Rs. 5649.2 crore as of June 30, 2021 wherein both mutual funds and FIIs have raised their stake. FII and FPI have picked a 0.03% stake taking the total holding by them to 9.71% against the earlier 9.68%. Mutual funds on the other hand have roped in 0.01% stake raising the stake to 0.04% as at the end of June quarter.
Vakrangee is a Mumbai headquartered company offering services in the areas of e-governance, e-commerce, financial, insurance, logistics and banking services to the underserved. The company delivers services via Nextgen Vakrangee Kendras i.e. the One Stop Shop.
3. The Ramco Cements:
This mid cap cement sector company has been bought by FIIs or FPIs taking the total holding to 8.64% from 8.26% as of March 2021. Also, the FPI and FII institutions invested into the stock have also increased from 144 to 149 as of June quarter.
Chennai headquartered cements firm is a flagship company of The Ramco Group. Main product of the company is Portland cement. The company stands at the fifth place in the country when it comes to cement production.
Last the stock of The Ramco Cements has been quoting at a price of Rs.1075.05
4. Aarti Industries:
This is a midcap scrip with a market capitalization of Rs. 25,107 crore as of June 30, 2021. FIIs or FPIs have increased the holding in the scrip by a huge quantum of 3.18% taking the total stake to 11.84% as of June 2021.
It is a company into basic materials and engages in the manufacture of speciality chemicals and pharmaceuticals. The company manufactures chemicals that are used in the downstream manufacturing of pharmaceuticals, agrochemicals, polymers, additives, surfactants, pigments and dyes.
Recently the scrip of Aarti Industries has been given an ‘Accumulate' rating by Geojit for a target price of Rs. 1902. Last the scrip of Aarti Industries traded higher at Rs. 854.05.
5. Alicon Castalloy Ltd:
This is a small cap company commanding a market cap of Rs. 655.05 crore. Institutional Investors have increased holdings from 0.17% to 9.68% in Jun 2021 qtr i.e. a change of 9.5%
The company is into manufacturing of aluminium alloy castings. The Company produces parts for the automotive, agricultural equipment, marine, medical devices, locomotive, extreme sports apparatus and power industries.
The scrip of Alicon Castalloy trades at a price of Rs. 706 per share.