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Share Market: It has been heard for several months that foreign institutional investors (FIIs) are continuously selling their shares in the Indian stock market. Whereas the truth has come out that they are selling big stocks and investing money in small and mid caps. December quarter data showed that FIIs have increased stake in 9 companies of Nifty 50, while they have sold their shares in the remaining 41 companies.
Increase in stake in small and mid cap stocks
According to a report by Moneycontrol, FIIS has increased its stake in only 26 companies out of Nifty 100 companies. On the contrary, FIIs have increased their investment in 44 percent companies of BSE Mid Cap Index and 55 percent companies of BSE Small Cap Index. FIIS has increased its stake in 466 companies out of 937 companies of BSE Small Cap Index, while it has sold its shares in 425 companies. Their position remained the same in the remaining 46 companies.
Investment has increased in IPO
Earlier only retail investors used to invest extensively in small caps, but now seeing more profit opportunities in these stocks, FIIs are also investing in them. Now the question comes that why has FIIS changed its strategy regarding investment? In fact, December quarter data shows that FIIS may have sold shares worth Rs 1.56 lakh crore in the stock market, but instead invested Rs 55,582 crore in IPO. This is because IPOs have given returns of 50 to 80 percent on listing and in some cases even 100 percent. Whereas the returns in big stocks remained only 10-15 percent.
There is a possibility of the trend changing again
In fact, amid India’s slow economic growth, weak December quarter results and uncertainties like US tariffs, the FIIS bias in the Indian stock market has decreased, but this trend may change in the next few months as India is one of the fastest growing countries in the world. There is economy.
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