INSTITUTIONAL OWNERSHIP TRENDS.

 



Amid volatile swings, sectoral institutional ownership levels remained constant even as positive flows failed to prop up Nifty, which was down 3.2% in Q1FY12. From the portfolio perspective, the stake of BFSI in the overall FII portfolio declined whereas the consumer sector surged. A similar trend was seen within the DII portfolio where consumer sector soared while capital goods sustained its place. FIIs added positions in Infosys and L&T while slashing SBI, RIL and Axis Bank. A conspicuous trend in the Q1FY12 institutional flows was the growing appetite for defensive sectors (read consumer) as well as bottom up ideas. 






Sectoral ownership: FIIs hold more BFSI, IT, DIIs stick to cap goods

Reasonable stability was apparent in the sectoral ownership level on a Q-o-Q basis though divergences, between FII and DII ownerships, within sectors continue. For example, FIIs continued to hold substantially more within BFSI, software, auto, telecom and real estate sectors whereas DIIs hold more in capital goods. 

Portfolio: FIIs up weight on FMCG, sustain overweight on BFSI

Within the FII portfolio, share of FMCG sector saw a sharp jump (120bps) while the share of BFSI slipped ~100bps, Q-o-Q. Despite this, BFSI continues to be a key overweight while FMCG is an underweight. One of the reasons for the under-representation of the FMCG sector is the underweight position of ITC within the FMCG portfolio. The representation of other sectors within the FII portfolio stayed largely unchanged, Q-o-Q. 

DIIs hike FMCG share, overweight on cap goods

FMCG sector also found favour within the DII portfolio, its share shooting up 150bps Q-o-Q. The share of energy and materials, however, saw a decline of 50bps. DIIs remained overweight on the consumer and capital goods sector even as underweight position in BFSI and software was maintained. 

FIIs shed SBI, RIL, but lap up L&T, Infosys

On an average price basis, we estimate that the highest FII selling within the BSE-100 universe in Q1FY12 took place within BFSI and energy sectors while the highest buying was seen within consumers and software. Our estimates suggest that SBI and Axis Bank within BFSI and RIL and Cairn India within energy sector were among stocks in which FIIs reduced their positions while adding onto benchmark heavyweights such as L&T and Infosys.

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