During the period when foreign institutional investors (FIIs) slowed down their buying activity in the domestic equity markets, at least 86 companies from the broader space on Dalal Street witnessed FIIs doubling their stakes in the June quarter.
This shows a stock-specific approach when the broader market looks overheated due to higher valuations.
FIIs offloaded shares worth Rs 7,693 crore during the April-June quarter, while domestic institutional investors (DIIs) bought shares worth Rs 1,28,740 crore during the same period. Meanwhile, the benchmark equity index BSE Sensex advanced 7% in Q1FY25, while the BSE Midcap and BSE Smallcap indices surged 15% and 17%, respectively.
The latest shareholding showed that global investors had raised their stake in Ujjivan Small Finance Bank to 24.68% during the April-June quarter against 3.48% in the preceding quarter ended March 2024.
Emkay Global Financial Services, in a report, said that Ujjivan Small Finance Bank is looking to transform into a less restrictive ‘universal bank’ with relatively higher share of secured portfolio (40% by FY26) and better CASA ratio (over 30%) and still deliver sustained healthy return ratios (RoE of 20%). Ujjivan Small Finance Bank claims it is eligible for a universal banking licence per recently released norms by the RBI, and plans to apply for the licence within 12 months.”
Last Mile Enterprises (formerly known as Trans Financial Resources Limited) is next on the list. Overseas investors held a 17.04% stake in the company as of June 30 against an 8.44% stake in the preceding quarter.
Sharing his view on FII inflows, V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “FII flows will continue to be erratic, influenced by global factors. Better-than-expected results from IT majors, who have come out with results so far, indicate a potential for FII buying in these stocks where valuations are not excessive.”
Data further highlighted that FIIs also more than doubled their stake in Popular Vehicles & Services (to 16.01% from 7.01%), Aurionpro Solutions (to 12.85% from 6.27%), Vodafone Idea (to 12.67% from 1.97%), CSB Bank (12.42% from 4.93%), PSP Projects (7.02% from 2.31%) and One Point One Solutions (5.13% from 2.02%).
Styrenix Performance Materials, MAS Financial Services, Paras Defence and Space Technologies, PC Jeweller, Shakti Pumps (India), Happy Forgings, Borosil, Lloyds Metals & Energy, Gillette India, and Arvind Smartspaces stood among other companies in which they more than double their stake during the quarter gone by.
In the recent developments, Vodafone Idea’s capital raising committee has approved the second tranche of the allotment of 41,52,02,701 equity shares worth Rs 614.5 crore at an issue price of Rs 14.80 per share to Nokia Solutions and Networks India, and Ericsson India–vendors of the company, on a preferential basis. On the other hand, Paras Defence and Space Technologies has guided for revenue of Rs 330 crore in FY25.
FIIs also more than doubled their stake in Pudumjee Paper Products, Protean e-Gov Technologies, Everest Kanto Cylinder, Nivaka Fashions, Ind-Swift Laboratories, Johnson Controls – Hitachi Air Conditioning India, Ratnaveer Precision Engineering and D-Link (India) for the quarter ended June 30.
