As FIIs turn cagey on D-Street, these 55 stocks are at great risk
Foreign institutional investors (FIIs) have turned wary about the prospects of the Indian equity market since February following the introduction of long-term capital gains tax (LTCG) on equity in Union Budget 2018, a Rs 12,700 crore scam in Punjab National Bank (PNB) and repeated signals from the US Fed to hike interest rates rapidly.
Several global financial services firms, including CLSA and Morgan Stanley, have since cut India’s weightage in their scheme of things.
FIIs have been offloading stocks in the cash market in the recent past. They offloaded shares worth a net of around Rs 12,000 crore between February 1 and March 7 after having pumped in Rs 13,781 crore in January and Rs 49,729 crore in the whole of last year.
With clear signs of FIIs losing their conviction on India and the global liquidity squeeze posing a clear threat of capital outflow from emerging markets, including India, some analysts say FII-heavy stocks are likely to witness freaky fortune in coming months.
FIIs hold huge clout in the domestic market, holding around 18 per cent of India’s total market capitalisation.
Within the BSE200 basket, they held more than 25 per cent stake at the end of December in as many as 58 companies, whose stocks appear to be at the maximum risk should the FII outflow becomes rapid.
Bulls made a stunning comeback on 8th March 2018 after being mauled for six straight sessions.
At one stage the 30-share index rallied 377 points during the day. It ended 318 points higher at 33,352. The Nifty50 index gained 88.45 points to shut shop at 10,242.65. Out of 50 constituents, 26 ended in the green and 24 in the red.
Nifty Bank index closed at 1.65 per cent up at 24,477.65, with 9 out of 12 constituents in the green. The Nifty PSU Bank index rose a solid 3 per cent to 2,916.50 while Nifty Private Bank went up 1.40 per cent to 13,896.45.
India VIX fell 7 per cent to 14.59, signalling volatility is easing in the market.