Foreign institutional investors (FIIs) went on a buying frenzy in the March quarter, increasing their stake in at least 144 BSE 500 businesses, according to Ace Equity's initial holdings statistics. However, the year began with equities outflows of Rs 25,743 crore in January, followed by a little positive inflow of Rs 1,538 crore in February and a dramatic increase to Rs 35,098 crore inflows in March.
Market analysts feel that the durability of the Indian stock market and strengthening macroeconomic conditions led FPIs to become buyers in India.
Overall, they boosted their share in several Adani Group companies, including Adani Green Energy (to 18.15% from 18.03%), Adani Ports and Special Economic Zone (to 14.98% from 14.72%), Adani Power (to 15.91% from 15.86%), Adani Total Gas (to 13.12% from 13.06%), and Adani Wilmar (to 0.77% from 0.65%).
Data Patterns (India) saw a 7.82 percentage point increase in global investor equity, reaching 14.56%. They had a 6.74% stake in the company as of December 2023. Jefferies, a global brokerage, has given a price objective of Rs 3,545 for Data Patterns, a private sector defence electronics business with its main competitive advantage being in-house technology.
"We expect three critical levers will be activated during the next 12-24 months. India's defence indigenisation drive is driving double-digit revenue growth, with visibility on revenues rising 5x in FY24E-30E improving as the export pipeline expands and working capital intensity decreasing due to customer diversity. "ROE improvement as earnings trajectory shifts is another driver of stock price," Jefferies stated in its analysis.
Computer Age Management Services, Eureka Forbes, Interglobe Aviation (IndiGo), JSW Energy, Chalet Hotels, NCC, Mankind Pharma, Macrotech Developers, NMDC, Aditya Birla Sun Life AMC, Bharat Petroleum Corporation, Natco Pharma, Lupin, and The Phoenix Mills were among the companies in which they increased their stake by 2% to 7% in the previous quarter.
Nuvama Institutional Equities is bullish on IndiGo, setting a target price of Rs 3,953. "Indigo's unparalleled network coupled with a duopoly-like industry structure will drive its profitability," Nuvama stated in a March report.
FPIs also favoured the insurance behemoth Life Insurance Corporation of India (LIC). Their investment in LIC was 0.14% as of March 31, 2024, compared to 0.06% on December 31, 2023.
Global investors increased their stake in Punjab National Bank (to 4.82% from 3.10%), Bank of Maharashtra (to 1.04% from 0.45%), City Union Bank (to 26.96% from 26.60%), CSB Bank (to 4.93% from 4.62%), Bank of India (to 4.52% from 4.31%), State Bank of India (to 11.09% from 10.91%), Bank of Baroda (to 12.40% from 12.27%), Central Bank of India (to 0.17% from 0.07%), UCO Bank (to 0.03% from 0.01%), and Punjab & Sind Bank (to 0.02% from 0.01%).
