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Economic Times
7 hours ago
- Business
- Economic Times
Rs 1 lakh crore FII selloff in 6 sectors! Are you still holding the wrong stocks?
Foreign institutional investors have aggressively sold off nearly ₹1 lakh crore in Indian equities across six key sectors, including IT and FMCG, over the past six months. Foreign institutional investors have aggressively sold off nearly ₹1 lakh crore in Indian equities across six key sectors, including IT and FMCG, over the past six months. This pullback reflects concerns about high valuations, global macro uncertainties, and potential earnings downgrades. Telecom and financials are notable exceptions, attracting FII inflows amidst this broad de-risking trend. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Valuations at Tipping Point Earnings Under Pressure Tired of too many ads? Remove Ads Where the Smart Money Is Moving Bottom Line: What Should Investors Do? Foreign institutional investors (FIIs) have gone on a selling spree, offloading nearly Rs 1 lakh crore worth of Indian equities in just six months across six key sectors of consumer durables FMCG , and IT . The sharp pullback, concentrated in segments once considered defensives or structural bets, underscores rising concerns around valuations, global macro uncertainty, and a shifting earnings biggest casualty is the IT sector, which alone has seen Rs 33,479 crore in net FII outflows, or a third of total selling. This is followed by FMCG (Rs 17,819 crore), auto (Rs 16,058 crore), consumer services (Rs 14,417 crore), power (Rs 12,231 crore), and consumer durables (Rs 11,296 crore).'We continue to maintain our underweight stance in the IT sector, as we foresee a slowdown in overall IT spending in the US market and a probable delay in discretionary spending,' said Neeraj Chadawar, Head of Fundamental and Quantitative Research at Axis Securities. 'Guidance and commentary remain critical for the sector going forward.'The broad-based nature of the selling suggests a structural de-risking rather than just profit-taking. Even construction (-Rs 9,322 crore) and healthcare (-Rs 9,048 crore) have witnessed sharp outflows. In contrast, only a handful of sectors have seen net FII inflows, including telecom (Rs 23,065 crore) and financials (Rs 9,456 crore).Despite the bounce-back in domestic equities since April, foreign investors remain wary. FIIs were net sellers in four of the six months this year, including massive outflows of Rs 78,027 crore in January and Rs 34,574 crore in February. Even June, so far, has seen a net selloff of Rs 5,404 crore (till June 15).'Export-facing sectors will be in a wait-and-watch mode… domestic-facing sectors will likely lead from here,' Chadawar added, highlighting the impact of reciprocal tax measures and global macro retreat comes amid a strong equity rally that has made valuations appear frothy, particularly in mid- and small-cap segments. According to Jefferies' Chris Wood, the Nifty Midcap 100 Index now trades at 27.1x forward earnings, even as the Nifty itself is at 22.2x—well above its historical median.'Valuations have become an issue again, particularly in the mid-cap space,' Wood wrote in his GREED & fear report. 'The equivalent of $7.2 billion of equity supply was raised last month and $6 billion so far in June. It is this supply which poses the main risk to the market.'Wood noted that domestic flows and sentiment remain strong, especially in consumer finance stocks. However, FII positioning indicates growing concern about over-valuation and saturation in parts of the valuation, earnings downgrades and growth moderation are another red flag. HSBC, in its Q4 review, flagged weak topline performance in consumer staples and slowing credit growth in banks.'Demand for consumer staples was subdued, while competitive intensity remains high… Growth for banks moderated to a single-digit rate amid margin pressures,' the HSBC note said, adding that 'a sustained recovery in earnings growth is still a few quarters away.'The IT sector, despite posting 6% net income growth, continues to suffer from poor visibility in US demand, weak discretionary spend, and macro uncertainty in export markets. This aligns with Chadawar's view that export-oriented sectors remain underweight, pending clarity on reciprocal trade not all foreign investors are pulling back entirely—they're simply rotating. FIIs have made significant investments in telecom (Rs 23,065 crore) and to a lesser extent in financials (Rs 9,456 crore), services (Rs 7,351 crore), and chemicals (Rs 4,863 crore).'From a long-term valuation and earnings visibility perspective, our portfolio is currently tilted towards cyclicals,' said Chirag Mehta, CIO, Quantum AMC. 'We believe the global macro challenges do not derail India's domestic cyclical recovery. Sectors like banking, consumer discretionary, materials, and utilities appear attractive.'While Mehta remains cautious on IT, he believes continued correction could create long-term entry opportunities, especially in high-quality names with consistent earnings Jefferies' GREED & fear India portfolio is shifting gears. Positions in L&T, Thermax, and Godrej Properties are being exited, replaced with TVS Motor, Home First Finance, and Manappuram Finance. Additional exposure is also being added to PolicyBazaar and Bharti Airtel, signaling a shift to consumption- and credit-focused domestic flows remain robust, the intensity and concentration of FII selling, especially in IT, FMCG, and auto, should not be ignored. With nearly ₹1 lakh crore of outflows in six months, the foreign money is clearly betting on earnings downgrades, valuation fatigue, and a global demand slowdown.'We seek out quality, high-integrity businesses at reasonable valuations… Our value-conscious approach often leads us to sectors that may be out of favour but possess strong fundamentals,' Mehta investors navigating this turbulent landscape, the data suggests a clear bifurcation: domestic-oriented sectors like telecom and financials are attracting foreign capital, while export-dependent sectors face sustained selling pressure. The challenge lies in timing entry points as valuations remain elevated despite the sectoral rotation.(Data: Ritesh Presswala): Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
8 hours ago
- Business
- Time of India
Rs 1 lakh crore FII selloff in 6 sectors! Are you still holding the wrong stocks?
Live Events Valuations at Tipping Point Earnings Under Pressure Where the Smart Money Is Moving Bottom Line: What Should Investors Do? (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Foreign institutional investors (FIIs) have gone on a selling spree, offloading nearly Rs 1 lakh crore worth of Indian equities in just six months across six key sectors of consumer durables FMCG , and IT . The sharp pullback, concentrated in segments once considered defensives or structural bets, underscores rising concerns around valuations, global macro uncertainty, and a shifting earnings biggest casualty is the IT sector, which alone has seen Rs 33,479 crore in net FII outflows, or a third of total selling. This is followed by FMCG (Rs 17,819 crore), auto (Rs 16,058 crore), consumer services (Rs 14,417 crore), power (Rs 12,231 crore), and consumer durables (Rs 11,296 crore).'We continue to maintain our underweight stance in the IT sector, as we foresee a slowdown in overall IT spending in the US market and a probable delay in discretionary spending,' said Neeraj Chadawar, Head of Fundamental and Quantitative Research at Axis Securities. 'Guidance and commentary remain critical for the sector going forward.'The broad-based nature of the selling suggests a structural de-risking rather than just profit-taking. Even construction (-Rs 9,322 crore) and healthcare (-Rs 9,048 crore) have witnessed sharp outflows. In contrast, only a handful of sectors have seen net FII inflows, including telecom (Rs 23,065 crore) and financials (Rs 9,456 crore).Despite the bounce-back in domestic equities since April, foreign investors remain wary. FIIs were net sellers in four of the six months this year, including massive outflows of Rs 78,027 crore in January and Rs 34,574 crore in February. Even June, so far, has seen a net selloff of Rs 5,404 crore (till June 15).'Export-facing sectors will be in a wait-and-watch mode… domestic-facing sectors will likely lead from here,' Chadawar added, highlighting the impact of reciprocal tax measures and global macro retreat comes amid a strong equity rally that has made valuations appear frothy, particularly in mid- and small-cap segments. According to Jefferies' Chris Wood, the Nifty Midcap 100 Index now trades at 27.1x forward earnings, even as the Nifty itself is at 22.2x—well above its historical median.'Valuations have become an issue again, particularly in the mid-cap space,' Wood wrote in his GREED & fear report. 'The equivalent of $7.2 billion of equity supply was raised last month and $6 billion so far in June. It is this supply which poses the main risk to the market.'Wood noted that domestic flows and sentiment remain strong, especially in consumer finance stocks. However, FII positioning indicates growing concern about over-valuation and saturation in parts of the valuation, earnings downgrades and growth moderation are another red flag. HSBC, in its Q4 review, flagged weak topline performance in consumer staples and slowing credit growth in banks.'Demand for consumer staples was subdued, while competitive intensity remains high… Growth for banks moderated to a single-digit rate amid margin pressures,' the HSBC note said, adding that 'a sustained recovery in earnings growth is still a few quarters away.'The IT sector, despite posting 6% net income growth, continues to suffer from poor visibility in US demand, weak discretionary spend, and macro uncertainty in export markets. This aligns with Chadawar's view that export-oriented sectors remain underweight, pending clarity on reciprocal trade not all foreign investors are pulling back entirely—they're simply rotating. FIIs have made significant investments in telecom (Rs 23,065 crore) and to a lesser extent in financials (Rs 9,456 crore), services (Rs 7,351 crore), and chemicals (Rs 4,863 crore).'From a long-term valuation and earnings visibility perspective, our portfolio is currently tilted towards cyclicals,' said Chirag Mehta, CIO, Quantum AMC. 'We believe the global macro challenges do not derail India's domestic cyclical recovery. Sectors like banking, consumer discretionary, materials, and utilities appear attractive.'While Mehta remains cautious on IT, he believes continued correction could create long-term entry opportunities, especially in high-quality names with consistent earnings Jefferies' GREED & fear India portfolio is shifting gears. Positions in L&T, Thermax, and Godrej Properties are being exited, replaced with TVS Motor, Home First Finance, and Manappuram Finance. Additional exposure is also being added to PolicyBazaar and Bharti Airtel, signaling a shift to consumption- and credit-focused domestic flows remain robust, the intensity and concentration of FII selling, especially in IT, FMCG, and auto, should not be ignored. With nearly ₹1 lakh crore of outflows in six months, the foreign money is clearly betting on earnings downgrades, valuation fatigue, and a global demand slowdown.'We seek out quality, high-integrity businesses at reasonable valuations… Our value-conscious approach often leads us to sectors that may be out of favour but possess strong fundamentals,' Mehta investors navigating this turbulent landscape, the data suggests a clear bifurcation: domestic-oriented sectors like telecom and financials are attracting foreign capital, while export-dependent sectors face sustained selling pressure. The challenge lies in timing entry points as valuations remain elevated despite the sectoral rotation.(Data: Ritesh Presswala): Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
4 days ago
- Business
- Time of India
Vishal Mega Mart set to join FTSE Global Mid Cap Index on June 20
Mumbai: Vishal Mega Mart is set to be included in the FTSE Global Mid Cap Index on June 20, following the stake sale by promoters earlier this week. The inclusion could lead to inflows of around $115 million, according to Nuvama Alternative estimates. Nuvama expects Vishal Mega to be a strong contender for inclusion in the MSCI Index in August, which could lead to inflows of around $225 million. The announcement is expected on August 8. Agencies "Following the 20% promoter stake sale , MSCI is expected to revise the free float upwards, increasing the likelihood of the stock's inclusion in the MSCI August 2025 review," said Abhilash Pagaria, head of Nuvama Alternative. Currently, Vishal Mega is a part of the FTSE Russell Universe. Samayat Services sold shares of Vishal Mega Mart worth ₹10,220.4 crore in a bulk deal on NSE on Tuesday. The promoter group entity sold 90 crore shares at ₹113.6 apiece, representing 19.6% of the company's total equity. As of March 31, Samayat Services LLP owned a 74.6% stake in the company. The stock fell 3.2% on Wednesday to close at ₹122.7. Promoter stake sales increase a stock's free float, making it eligible for inclusion or a higher weight in global indices like MSCI and FTSE. When a stock is brought into global indices, passive funds like ETFs, whose portfolios mimic these benchmarks, must purchase the shares in line with the revamp. Live Events In the last month, Vishal Mega Mart shares shed 2.4% while the Nifty Midcap 100 Index gained 1.8% in the same period.
Hans India
09-06-2025
- Business
- Hans India
Trade Setup June 10: Nifty breaks out of consolidation, eyeing 25,600
The Nifty index extended its winning streak for the fourth consecutive day, closing at an eight-month high amid strong market momentum. On the first trading day of the week, the Nifty opened with a sharp upside gap of 157 points, eventually settling above 25,100 levels to close the session at 25,103, marking a gain of 100 points. This is the highest closing level seen in 2025 so far. Market breadth was broadly positive, with 40 Nifty stocks closing in the green. Leading the charge were heavyweight stocks such as Jio Financial, Kotak Bank, and Bajaj Finance. The Nifty Bank index also reached new heights, surpassing the 57,000 mark for the second consecutive day, signaling robust investor interest in banking stocks. Midcap and Smallcap indices continued to outperform the benchmark, highlighting strong buying across broader market segments. The Nifty Smallcap index marked its sixth straight day of gains, reaching a fresh five-month high. The Nifty Midcap 100 Index rose by 1.13%, while the Nifty Smallcap 100 Index surged by 1.57%, reflecting investors' appetite for higher-risk, high-reward stocks. Sector-wise, all indices except Nifty Realty ended positive. Nifty PSU Banks, IT, and Oil & Gas sectors were the top performers, driven by strong demand. The Reserve Bank of India's recent decision to cut the repo rate by 50 basis points and the cash reserve ratio (CRR) by 100 basis points fueled gains in banks and NBFCs. Additionally, RBI's easing of gold loan norms triggered increased buying in gold financiers, with stocks rising between 4% and 8%. In the automobile sector, companies like Hero MotoCorp and Maruti Suzuki benefitted from the RBI rate cut announcement and registered notable gains. Tata Motors rose 1%, buoyed by an optimistic mid-term outlook. The company projects its commercial vehicle business to capture a 40% market share, with EBITDA margins in the teens and healthy free cash flow generation expected. On the downside, shares of food delivery players Swiggy Ltd. and Zomato's parent company Eternal Ltd. slipped 2-3% after reports surfaced about Rapido launching a food delivery pilot in Bengaluru later this month, potentially intensifying competition. Looking ahead, investors will focus on key economic data, including the US May Retail Inflation (CPI) report scheduled for Wednesday and India's CPI data due on Thursday. These indicators are expected to influence market sentiment in the near term. Expert Views: Market strategists remain optimistic about the Nifty's prospects. Siddhartha Khemka of Motilal Oswal highlighted that the market's gradual uptrend is supported by robust corporate earnings, RBI's liquidity measures, a favorable monsoon forecast, and potential progress in the US-India trade deal. Nagaraj Shetti from HDFC Securities noted, 'A sustained move above 25,200 could pave the way for a further rally toward 25,600.' Immediate support is seen at 24,900 levels. Rupak De of LKP Securities pointed out the index has decisively broken out from a consolidation phase, with strong support above the 50-day moving average. He added, 'A move above 25,350 may trigger further gains toward 25,700, while support lies at 24,850.' Corporate Updates to Watch: Capri Global has launched a Qualified Institutional Placement (QIP) to raise up to ₹2,000 crore, including a ₹500 crore upsizing option. Tech Mahindra announced that Lakshmanan Chidambaram will retire as President of Tech Mahindra Americas, effective June 30, 2025. Oberoi Realty confirmed the resignation of Pankaj Gupta, Chief Executive Officer - Commercial Real Estate, effective June 9, 2025. Jana Small Finance Bank has applied to the Reserve Bank of India for approval to voluntarily transition from a Small Finance Bank to a Universal Bank. With these developments, the Indian markets are poised for further action, keeping investors engaged ahead of crucial global and domestic cues.
Mint
05-06-2025
- Business
- Mint
Stocks to buy under ₹100: Experts recommend five shares to buy today — 5 June 2025
Stock market today: After losing for three straight sessions, the Indian stock market witnessed a trend reversal on Wednesday. The Nifty 50 index finished 77 points higher at 24,620, the BSE Sensex ended 260 points higher at 80,998, and the Bank Nifty index added 76 points and closed at 55,676. Eternal, Jio Financial and IndusInd Bank were among the major gainers on the Nifty, while major losers were Bajaj Finserv, Trent, and Eicher Motors. The Mid-cap and the Small-cap indices once again showcased their robust outperformance relative to the benchmark. The Nifty Midcap 100 Index rose by 0.71%, while the Nifty Small-cap 100 Index advanced by 0.79%. Market breadth remained positive for the third consecutive day, with advancing stocks outpacing declining ones, as indicated by a BSE advance-decline ratio of 1.10. Speaking on the outlook for the Nifty 50 today, Nandish Shah, Deputy Vice President at HDFC Securities, said, "The Nifty 50 index closed below its 20-day EMA for the second consecutive session. However, Nifty held its level above the previous swing low of 24462 registered on 22 May 2025. On the upside, a swing high of 24,845 would offer resistance to Nifty 50 index, while 24,500 is likely to act as strong support." On the outlook of the Bank Nifty today, Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities, said, "Structurally, the Nifty Bank index remains mildly bullish, holding above its short-term moving average. However, price action continues to lack momentum, with buyers hesitating to chase highs ahead of the RBI monetary policy outcome later this week. This upcoming event will likely act as a directional resolution catalyst, potentially bringing sharp moves and volatility spikes. Unless the index decisively breaks below 55,300, the overall structure favours buying-on-dips, and the downside risk appears limited for now. A sustained move above the resistance of 56,150 could attract aggressive buying interest, but until that happens, the range trading strategy may remain valid." Asked about the outlook of the Indian stock market today, Siddhartha Khemka, Head of Research—Wealth Management at Motilal Oswal, said, 'We expect the market to remain in consolidation mode, tracking global markets and macro-economic cues, while stock-specific action will continue on the back of sectoral developments.' Regarding stocks to buy today, market experts Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher; Mahesh M Ojha, AVP — Research at Hensex Securities; Sugandha Sachdeva, Founder of SS WealthStreet; and Anshul Jain, Head of Research at Lakshmishree Investment and Securities — recommended these five intraday stocks for today under ₹ 100: Belrise Industries, IOB, Shriram Properties, SJVN, and Jain Irrigation Systems. 1] IOB: Buy at ₹ 41.20, Target ₹ 45, Stop Loss ₹ 40; 2] Belrise Industries: Buy at ₹ 97, Target ₹ 105, Stop Loss ₹ 95. 3] Shriram Properties: Buy at ₹ 93 to ₹ 94.30, Targets ₹ 96, ₹ 98, ₹ 102, ₹ 105, Stop Loss ₹ 90.80. 4] SJVN: Buy at ₹ 98.30, Target ₹ 101.50, Stop Loss ₹ 96.80. 5] Jain Irrigation Systems: Buy at ₹ 61.50, Target ₹ 68, Stop Loss ₹ 58.
