Latest news with #GeojitInvestments'
Economic Times
13-05-2025
- Business
- Economic Times
FII return with Rs 46K cr buying spree; likely prefer largecaps vs broader market stocks. Here's why
Foreign institutional investors (FIIs) infused nearly Rs 46,400 crore into Indian equities since April 15, extending their shopping spree to 17 out of the last 18 sessions, with a significant portion of these flows likely directed towards large-cap stocks. This trend highlights a growing preference among overseas institutions for quality and stability amid prevailing global uncertainties. ADVERTISEMENT With India-Pakistan ceasefire and a tariff truce between the US and China, where both countries have agreed to significantly ease their tit-for-tat tariffs for a 90-day period, a calm is expected to return in global markets. On Monday, both Indian and US markets ended with strong gains. FIIs broke their 16-session buying streak on Friday, offloading shares worth Rs 3,799 crore as tensions between India and Pakistan flared up. But on Saturday, both countries agreed to a ceasefire. Puneet Sharma, CEO and Fund Manager at Whitespace Alpha, said that he is observing a clear re-risking by FIIs in May 2025, with initial capital allocations favouring large-cap names, particularly in sectors like private banking, capital goods, and high-beta infrastructure plays.'We see the current phase of FII flows as quality-led and conviction-driven and not a blanket chase of momentum. Largecaps remain the primary beneficiaries, with midcaps following through in pockets where the growth narrative is backed by numbers,' Sharma his view, a targeted participation in midcaps is being seen and only where there's a strong earnings delta or sectoral tailwind, like in defence, renewables, and manufacturing clusters with PLI exposure, stand out. ADVERTISEMENT Corroborating this view, Geojit Investments' VK Vijayakumar said that there is a big shift in market preference in favour of largecaps, away from overvalued segments of mid and smallcaps is significant. FIIs are mainly buying largecaps, and this trend can continue, he opined."The ceasefire between India and Pakistan has paved the way for a sharp rally in the market. The prime mover of the rally will be the FII buying, which has been sustained for sixteen continuous days, except last Friday when the conflict escalated. Domestic macros like expectations of high GDP growth and revival of earnings growth in FY26 and declining inflation and interest rates augur well for the resumption of a rally in the market,' Vijayakumar said. ADVERTISEMENT The trend reversed following a three-month pause announced by Donald Trump. A fortnightly data on FII action by NSDL for the period between April 16 and 31, shows that the highest FII inflows went to the financial services sector at Rs 17,585 crore. Sectors that followed were telecommunication (Rs 3,413 crore), healthcare (Rs 2,138 crore), power (Rs 1,627 crore) and capital goods (Rs 1,613 crore). FIIs have also bought shares in the auto & auto components sector, metals & mining, chemicals, construction and realty, among others. ADVERTISEMENT In Vijayakumar's view, FIIs are preferring stocks like ICICI Bank, HDFC Bank, Bajaj Finance, Reliance Industries (RIL), Larsen & Toubro (L&T), Bharti Airtel, Ultratech, Mahindra & Mahindra (M&M) and Eicher Motors, and they are likely to lead the rally. At the peak of FII selling between January and March, when foreign investors sold shares worth Rs 116,574 crore, there were 11 Nifty 50 stocks in which the FIIs added stakes. These stocks include Hindalco Industries, ICICI Bank, IndusInd Bank, JSW Steel, Kotak Mahindra Bank, Bajaj Finance, Bajaj Finserv, Bharat Electronics, Bharti Airtel, Shriram Finance and Wipro. ADVERTISEMENT A report by Motilal Oswal Financial Services (MOFSL) highlights the shift in the domestic equity ownership of FIIs. The FIIs held 18.8% as of March 2025 versus 22.8% in March 2015. At the same time, domestic institutional investors raised their stake to an all-time high of 19.2% in March 2025 versus 10.8% in March a proportion of the free float of Nifty-500, FII ownership decreased 190 bps YoY and 30 bps QoQ to 37.3%, while DII ownership increased 220 bps YoY and 110 bps QoQ to 38%.Sharma of Whitespace attributes this shift to the rising domestic participation, expansion of market breadth, the impact of Covid-19, a surge in global interest rates to multi-decade highs, and valuation expansion in the domestic markets. Markets have displayed strong stability for the past month after Trump deferred reciprocal tariffs for three months. Over the past month, the Nifty has delivered a return of 9.2%, closely tracking the Nifty Midcap 100's gain of 9.7% and outperforming the Nifty Smallcap, which rose 6.8%. On a 1-year basis, the headline index has delivered 13% returns, higher than 12% by Nifty Midcap 100 and 4% by Nifty Smallcap 100. Sharma of Whitespace Alpha said that when global volatility subsides and the INR stabilises, institutions tend to first rotate into scalable, liquid opportunities. 'From our market-neutral framework, this has also resulted in noticeable shifts in index futures basis, signalling renewed institutional confidence. In contrast, smallcaps remain more of a retail and domestic mutual fund story at this point, with FIIs staying cautious due to elevated valuations and limited liquidity headroom,' he said midcap IT and digital stocks are other segments to watch. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
The Hindu
11-05-2025
- Business
- The Hindu
FPIs continue to invest; inject ₹14,167 cr. in equities in May
Foreign investors continue to show confidence in the country's equity market, infusing ₹14,167 crore so far this month, largely driven by favourable global cues and robust domestic fundamentals. Notably, this inflow has come despite the ongoing military tensions between India and Pakistan. India-Pakistan ceasefire LIVE: Follow the updates on May 11, 2025 This positive momentum follows a net investment of ₹4,223 crore in April, marking the first inflow after three months, data with the depositories showed. Prior to this, foreign portfolio investors (FPIs) had pulled out ₹3,973 crore in March, ₹34,574 crore in February, and a substantial ₹78,027 crore in January. 'Going ahead, global macros (declining dollar, slowing U.S. and Chinese economy) and domestic macros (high GDP growth and declining inflation and interest rates) will facilitate increasing FPI inflow into the Indian equity,' V.K. Vijayakumar, Chief Investment Strategist, Geojit Investments, said. However, debt inflows are likely to remain very low, he added. According to the data from the depositories, FPIs made a net investment of ₹14,167 crore in equities in this month (till May 9). The latest flow has helped narrow the outflow to ₹98,184 crore in 2025 so far. India's equity markets witnessed a sharp resurgence in FPI activity in April, signalling a marked reversal from the outflow seen earlier this year. The momentum continued in May, too. 'This renewed momentum was underpinned by a blend of favourable global cues and robust domestic fundamentals that bolstered investor confidence,' Himanshu Srivastava, Associate Director - Manager Research, Morningstar Investment, said. One of the key catalysts behind this trend has been the improving outlook for a potential U.S.-India trade agreement. Additionally, the weakening of the U.S. dollar, alongside a strengthening Indian rupee, enhanced the appeal of Indian assets to global investors, he said. 'Furthermore, upbeat quarterly earnings from prominent Indian corporates added to the positive sentiment,' he added. 'The hallmark of FPI investment in recent days has been the sustained buying by them. They bought equity through the exchanges consecutively for 16 trading days ended on May 8 for a cumulative amount of ₹48,533 crore. They sold for ₹3,798 crore on May 9 when the India-Pak conflict got escalated,' Geojit Investments' Mr. Vijayakumar said. On the other hand, FPIs took out ₹3,725 crore from the debt general limit and invested ₹1,160 crore in the debt voluntary retention route during the period under review.
Economic Times
11-05-2025
- Business
- Economic Times
FPIs continue to invest; inject Rs 14,167 cr in equities in May
Foreign investors continue to show confidence in the country's equity market, infusing Rs 14,167 crore so far this month, largely driven by favourable global cues and robust domestic fundamentals. Notably, this inflow has come despite the ongoing military tensions between India and Pakistan. ADVERTISEMENT This positive momentum follows a net investment of Rs 4,223 crore in April, marking the first inflow after three months, data with the depositories showed. Prior to this, foreign portfolio investors (FPIs) had pulled out Rs 3,973 crore in March, Rs 34,574 crore in February, and a substantial Rs 78,027 crore in January. Going ahead, global macros (declining dollar, slowing US and Chinese economy) and domestic macros (high GDP growth and declining inflation and interest rates) will facilitate increasing FPI inflow into the Indian equity, VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said. However, debt inflows are likely to remain very low, he added. According to the data with the depositories, Foreign Portfolio Investors made a net investment of Rs 14,167 crore in equities in this month (till May 9). The latest flow has helped narrow the outflow to Rs 98,184 crore in 2025 so far. ADVERTISEMENT India's equity markets witnessed a sharp resurgence in FPI activity in April, signalling a marked reversal from the outflow seen earlier this year. The momentum continued in May too. This renewed momentum was underpinned by a blend of favourable global cues and robust domestic fundamentals that bolstered investor confidence, Himanshu Srivastava, Associate director - Manager Research, Morningstar Investment, said. ADVERTISEMENT One of the key catalysts behind this trend has been the improving outlook for a potential US-India trade agreement. Additionally, the weakening of the US dollar, alongside a strengthening Indian rupee, enhanced the appeal of Indian assets to global investors, he said. Furthermore, upbeat quarterly earnings from prominent Indian corporates added to the positive sentiment, he added. ADVERTISEMENT "The hallmark of FPI investment in recent days has been the sustained buying by them. They bought equity through the exchanges consecutively for 16 trading days ended May 8 for a cumulative amount of Rs 48,533 crore. They sold for Rs 3,798 crore on May 9 when the India-Pak conflict got escalated," Geojit Investments' Vijayakumar said. On the other hand, FPIs took out Rs 3,725 crore from debt general limit and invested Rs 1,160 crore in debt voluntary retention route during the period under review. (You can now subscribe to our ETMarkets WhatsApp channel)
&w=3840&q=100)
Business Standard
11-05-2025
- Business
- Business Standard
FPIs continue to invest; inject Rs 14,167 crore in equities in May
Foreign investors continue to show confidence in the country's equity market, infusing Rs 14,167 crore so far this month, largely driven by favourable global cues and robust domestic fundamentals. Notably, this inflow has come despite the ongoing military tensions between India and Pakistan. This positive momentum follows a net investment of Rs 4,223 crore in April, marking the first inflow in three months, data with the depositories showed. Prior to this, foreign portfolio investors (FPIs) had pulled out Rs 3,973 crore in March, Rs 34,574 crore in February, and a substantial Rs 78,027 crore in January. Going ahead, global macros (declining dollar, slowing US and Chinese economy) and domestic macros (high GDP growth and declining inflation and interest rates) will facilitate increasing FPI inflow into the Indian equity, VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said. However, debt inflows are likely to remain very low, he added. According to the data with the depositories, Foreign Portfolio Investors made a net investment of Rs 14,167 crore in equities in this month (till May 9). The latest flow has helped narrow the outflow to Rs 98,184 crore in 2025 so far. India's equity markets witnessed a sharp resurgence in FPI activity in April, signalling a marked reversal from the outflow seen earlier this year. The momentum continued in May too. This renewed momentum was underpinned by a blend of favourable global cues and robust domestic fundamentals that bolstered investor confidence, Himanshu Srivastava, Associate director - Manager Research, Morningstar Investment, said. One of the key catalysts behind this trend has been the improving outlook for a potential US-India trade agreement. Additionally, the weakening of the US dollar, alongside a strengthening Indian rupee, enhanced the appeal of Indian assets to global investors, he said. Furthermore, upbeat quarterly earnings from prominent Indian corporates added to the positive sentiment, he added. "The hallmark of FPI investment in recent days has been the sustained buying by them. They bought equity through the exchanges consecutively for 16 trading days ended May 8 for a cumulative amount of Rs 48,533 crore. They sold for Rs 3,798 crore on May 9 when the India-Pak conflict got escalated," Geojit Investments' Vijayakumar said. On the other hand, FPIs took out Rs 3,725 crore from debt general limit and invested Rs 1,160 crore in debt voluntary retention route during the period under review.
