This could be due to factors like global economic uncertainties or profit-taking after a strong run in the Indian market.
Industry-wise holding of FIIs (in descending order by change in value of holding (Rs.crore)
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Consumer Discretionary, Energy, and telecom lead the charge:
Consumer Discretionary: This sector witnessed the most significant increase in both the value (Rs 1,16,224 crore) and percentage of holdings (1.24%) by foreign institutional investors. This suggests growing confidence in domestic consumption, possibly driven by rising disposable incomes or festive season expectations.
Energy: The Energy sector also saw a noteworthy increase in holdings (Rs. 83,751 crore) and percentage (0.99%) by FIIs.
Telecom: The Telecom sector experienced a healthy rise in both value (Rs. 41,170 crore) and percentage of holdings (0.53%). This suggests investor optimism about the telecom industry’s growth prospects.
Other Sector Highlights:
Financial Services: This sector, although experiencing a decrease in value (-Rs. 1,01,794 crore) and percentage of holdings (-2.51%), still represents the largest shareholding category overall. Monitoring this trend is crucial to understand if it’s a temporary blip or a longer-term shift.
Domestic Institutional Investors, on the other hand, have increased their holdings in most sectors.
DIIs increased their allocation most to Energy (from 6.70 per cent of their total holding as on December 31, 2023 to 7.77 per cent of their total holding as on March 31, 2024) while they decreased their allocation most to Information Technology (9.25 to 8.41 ). FIIs increased their allocation most to Consumer Discretionary (15.03 to 16.27) while they decreased their allocation most to Financial Services (30.90 to 28.39).
Industry-wise holding of DIIs (in descending order by change in value of holding (Rs.crore)
The percentage of NSE companies’ value held by Mutual Funds increased to 8.92% as of March 31, 2024, compared to 8.81% at the end of December 2023. In rupee terms, the total value of Mutual Fund holdings reached Rs 33.96 lakh crore, representing a 7.66% increase from the previous quarter.
Considering only the freely tradable shares (excluding promoter holdings), Mutual Fund ownership by value went up to 18.36% in the quarter ending March 2024, compared to 17.87% three months prior. This indicates a growing presence in publicly available shares.
Industry-wise holding of domestic Mutual Funds (in descending order by change in value of holding (Rs.crore)
Insurance Companies: Insurance companies also exhibited a trend of increasing holdings across most sectors, with the Energy sector witnessing the highest rise (1.27%).
Sectoral trends:
Consumer Discretionary and Energy: These sectors saw the biggest increase in holdings by both DIIs and Mutual Funds, indicating optimism about domestic consumption and energy demand.
Financial Services: Despite a decrease in FII holdings, the sector still represents the largest shareholding category overall. However, it’s worth monitoring if the FII pullback continues.
Fast Moving Consumer Goods (FMCG) and Information Technology (IT): Both these sectors witnessed a decrease in FII holdings, however, the extent of decline is relatively smaller compared to Financial Services.
Tags: DIIs mutual funds FIIs sectors investors betting Personal Finance
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