FPI holding in BSE-200 companies drops to $305 billion in Dec-qtr: Report

New Delhi: Foreign portfolio investors (FPIs) pared their stake in BSE-200 firms to USD 305 billion during October-December quarter, with heavy selling in technology, consumers and pharmaceuticals sectors, a report said.

FPI ownership in the BSE-200 index stood at USD 337 billion during the September quarter, according to the Kotak Institutional Equities report.

In percentage terms, FPI holding (including American Depository Receipts or ADRs and global depository receipt or GDR) in the index marginally dropped to 24.2 percent in the three months ended December 31, 2016 against 25 percent in the preceding quarter.

A sector-wise analysis shows that FPIs sold in technology, consumers and pharmaceuticals and invested in energy.

"In December 2016 quarter, FPIs sold equities worth Rs 307 billion, the highest ever in a quarter," the report noted.

Meanwhile, domestic institutional investors' (DIIs) holdings in BSE-200 companies increased to 11.8 percent in the December quarter from 11.3 percent at the end of the previous three-month period.

DIIs, led by mutual funds, have invested heavily in the market. They primarily invested in banking, technology and pharmaceuticals sectors.

FPIs reduced maximum stake in Tech Mahindra during the quarter under review - 4.7 percentage points followed by Bharat Financial Inclusion (4.3 percent) and NCC (4.1 percent).

Overseas investors also trimmed their holdings in Tata Motors, Engineers India, Aurobindo Pharma, India Cements, Ambuja Cements, Titan Company, TeamLease Services, Oriental Bank of Commerce and Reliance Capital.

On the other hand, Manpasand Beverages saw substantial increase in FPI holdings - 8.1 percentage points, followed by LIC Housing Finance (5.3 percent) and MCX India (4.5 percent).