The domestic institutional investors (DIIs) have increased their holding in 72 per cent of stocks in the Nifty50 pack on a quarter-on-quarter (QoQ) basis, a brokerage firm Motilal Oswal said in its report.
DII holdings in Nifty stocks increased the most in Power Grid, Dr Reddy’s Labs, HDFC, Tata Steel, HDFC Life Insurance, IndusInd Bank, HDFC Bank, UltraTech Cement, ICICI Bank, Kotak Mahindra Bank, and Bajaj Finance – up by more than 1 per cent QoQ.
Britannia, Hindalco, BPCL, and ITC were the top stocks that witnessed a decline of more than 1 per cent QoQ in DII holdings.
Similarly, using the Nifty500 as a benchmark, DIIs were significantly overweight on PSU Banks, Metals, Capital Goods, Automobiles, Consumer, and Telecom, while they were underweight on Technology, NBFCs, and Private Banks, the report said.
Overall, the top 5 sectoral holdings of DIIs in the Nifty-500 accounted for 64.4% of the total allocation – BFSI (27.9%), Technology (11.2%), Oil & Gas (10.4%), Consumer (8.8%), and Healthcare (6.1%), Motilal Oswal mentioned.
On a QoQ basis sectorally, DIIs saw a maximum increase in stake of Telecom (+130bp), Private Banks (+110bp), Consumer (+110bp), NBFCs (+90bp), Consumer Durables (+90bp), PSU Banks (+80bp), Healthcare (+80bp), Insurance (+70bp), Cement (+60bp), the brokerage said
It added that DII reduced their stake only in one sector – Capital Goods (-20bp).
The overall holding of DII in Nifty-500 has gone up by 70 bps QoQ and 30 bps YoY to 14.5 in the March quarter of the financial year 2021-22 (Q4FY22), the report also noted.
The FII-DII ownership ratio in the Nifty-500 declined to 1.4x in 4QFY22 from 1.6x in 4QFY21, the report also mentioned.
Over the last one year, the FII-DII ratio has increased in Utilities, Metals, Consumer Durables, and Capital Goods, but has decreased in Insurance, Real Estate, NBFCs, Private Banks, Retail, utomobiles, Healthcare, Cement, Telecom, and Oil & Gas.