Dollar deluge on D-Street! FPI-favourite stocks shoot up as much as 90% in less than a month

Domestic stocks have absorbed Rs 40,262 crore worth FPI money in August, compared with an aggregate Rs 43,934 crore that flowed in during the previous three months.

iStock
Data showed seven of every 10 heavily FPI-owned BSE500 scrips have managed to beat Sensex’s 3 per cent rise so far in August.
NEW DELHI: As overseas investors return to place heavy bets on domestic equities, a host of FPI-favourite stocks are on a roll. This clearly suggests global liquidity has been the main driving force behind the latest leg of the stocks rally.

Data showed seven of every 10 heavily FPI-owned BSE500 scrips have managed to beat Sensex’s 3 per cent rise so far in August. Some of these stocks have rallied as high as 90 per cent, even when higher market valuations continue to worry analysts.

Leading the pack is VA Tech Wabag, which has rallied 90.48 per cent so far in August. FPIs owned 22.29 per cent stake in the firm as of June 30.


IDFC, where FPIs held 37.27 per cent at the end of June quarter, has seen its shares rally 52 per cent in August. Jindal Stainless (Hisar), Shriram City Union Finance and Birlasoft, where FPIs held 20-25 per cent, have soared 42-50 per cent so far this month.

August has seen the highest FII inflows to Indian equities in 118 months, or since October 2010. FPIs net purchased stocks worth $5.43 billion during the month till August 21, which was lower only than the $6.42 billion inflows seen in October 2010.

Domestic stocks have absorbed Rs 40,262 crore worth FPI money in August, compared with an aggregate Rs 43,934 crore that flowed in during the previous three months. While FPI investment in the primary market, to an extent, contributed to higher flows in recent months, the institutional investor category has become a stronger force in the secondary market of late.
ADVERTISEMENT

Strides Pharma Science, Zee Entertainment Enterprises, Sunteck Realty, Adani Enterprises, PNB Housing Finance and Bliss GVS Pharma are some of the other FPI-heavy stocks that have jumped 30-40 per cent this month. FPIs owned 20-68 per cent stakes in these companies as of June 30.

While it would be difficult to gauge the FPI trend for August at present, data showed their buying was largely concentrated in oil & gas, IT, auto, pharma and insurance sectors in July. FPIs were seen selling shares in banks and financials last month.

In August, many of the banking stocks with high FPI stake failed to deliver returns. HDFC, where FPIs own 70.16 per cent stake, rose just 1 per cent so far. IndusInd Bank and Kotak Mahindra Bank are down 2 per cent each.

Bharat Forge, Redington (India), KPIT Technologies, Prestige Estate Projects, TeamLease Services, The Great Eastern Shipping and PVR are other FPI- heavy stocks that have risen 20-30 per cent this month. FPIs owned 20-48 per cent in these firms.
ADVERTISEMENT

14 stocks that analysts say can offer solid gains over 2-3 weeks
1/15

Domestic markets are trading near six-month highs but analysts are advising investors to remain cautious as some correction is likely given the fast rise. "Investors and traders can follow the up-moves by strictly guarding profits at current and higher levels as sharply falling volatility remains another big worry," said Milan Vaishnav, CMT, MSTA is a Consultant Technical Analyst and Founder of Gemstone Equity Research & Advisory Services.



Here are 14 stocks that analysts say can offer decent gains over the next two to three weeks

Domestic markets are trading near six-month highs but analysts are advising investors to remain cautious as some correction is likely given the fast rise. "Investors and traders can follow the up-mov..
Read More
This counter appears to have registered a breakout on lower time frame charts and looks ripe for a multiday upswing from current levels. Moreover, on daily charts it is moving in a well defined ascending channel for the last 66 trading sessions and based on recent increasing volumes, we presume that it is on the cusp of a breakout above the said channel. Hence, momentum will further get cemented once it manages a close above Rs 43. Therefore, positional traders are advised to buy into this counter for a target of Rs 49 with a stop below Rs 39 on closing basis. (Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in)
This counter appears to have registered a breakout on lower time frame charts and looks ripe for a multiday upswing from current levels. Moreover, on daily charts it is moving in a well defined ascen..
Read More
This counter appears to have embarked on a medium term uptrend as it erased 6 weeks of losses from the highs of Rs 103 to Rs 85 in just last 2 weeks which is a strong bullish sign, hinting a trend reversal in favour of the bulls. However, considering the strong upmove in the last week from the lows of Rs 94, traders are advised to adopt a two-pronged strategy of buying now and on dips if any into the zone of Rs 99-96 for an initial target of Rs 114. On a sustainable close above, one can look for a bigger target of Rs 125. Stop suggested for the trade is a close below 94. (Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in)
This counter appears to have embarked on a medium term uptrend as it erased 6 weeks of losses from the highs of Rs 103 to Rs 85 in just last 2 weeks which is a strong bullish sign, hinting a trend re..
Read More
After a brief pause, this counter appears to have resumed its uptrend as indicated by its price action on the back of relatively much higher volumes. Hence, as long as it sustains above recent low of Rs 145, one can retain a positive stance and look for an initial target of Rs 169 levels. Once Rs 169 is cleared, a higher target of Rs 190 can't be ruled out. Stop suggested for the trade is a close below Rs 145 levels. (Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in)
After a brief pause, this counter appears to have resumed its uptrend as indicated by its price action on the back of relatively much higher volumes. Hence, as long as it sustains above recent low of..
Read More
The stock has rallied from Rs 300 to Rs 440 within a very short period of time. In this month alone, it has rallied nearly 17 %. The important point is post-breakout activity, the stock not only surpassed its Rs 350 resistance mark, but comfortably managed to sustain above the same. The sharp surge in the price action surprised most of the traders. On daily and weekly charts, the stock has formed breakout continuation pattern which is broadly positive for Tata Steel. For the next few trading sessions, Rs 414 should act as a trend decider level for the bulls; a sustain above the same and we can expect a continuation of uptrend till Rs 460. Stop suggested for the trade is at Rs 414. (Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities)
The stock has rallied from Rs 300 to Rs 440 within a very short period of time. In this month alone, it has rallied nearly 17 %. The important point is post-breakout activity, the stock not only surp..
Read More
Post sharp uptrend rally from Rs 360 to Rs 480, the stock is witnessing narrow range activity between Rs 400-440. However, on weekly charts, the stock maintained bullish texture formation with positive SAR series which indicates uptrend is likely to continue in near term. In addition, on daily chart, the stock has formed promising double bottom formation near important retracement level which indicates strong possibility of fresh uptrend from current levels. Unless it is trading below Rs 395, positional traders can retain an optimistic stance and look for a target Rs 440. Fresh buying can be considered now and on dips, if any, between Rs 411 and Rs 405 levels with a stop loss below 395. (Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities)
Post sharp uptrend rally from Rs 360 to Rs 480, the stock is witnessing narrow range activity between Rs 400-440. However, on weekly charts, the stock maintained bullish texture formation with positi..
Read More
After a strong uptrend rally from Rs 150 to Rs 200, the stock is hovering in the range of Rs 190 to Rs 205. However, the short term structure of the stock is still on the positive side. On daily charts, the stock is consistently retaining higher bottom series pattern and the short term and medium term averages indicate uptrend formation is likely to continue in the near term. For the positional traders, Rs 190 should be the sacrosanct level. If it sustains above the same, we can expect uptrend continuation wave up to Rs 215. Further uptrend may also continue which could lift the stock to Rs 222 level. Stop loss suggested for the trade is at Rs 190. (Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities)
After a strong uptrend rally from Rs 150 to Rs 200, the stock is hovering in the range of Rs 190 to Rs 205. However, the short term structure of the stock is still on the positive side. On daily char..
Read More
The downward correction in the stock price seems to be over as the stock price has witnessed a sustainable upside bounce in the last couple of weeks. The stock price is placed near the key overhead resistance of Rs 42-43 levels and a sustainable move above this area could have a sharp positive impact ahead. Daily and weekly 14-period RSI and MACD are showing positive indications. Buying can be initiated in BHEL at current market price, one can add more on dips down to Rs 39, and wait for the upside target of Rs 44.50 in the next 3-5 weeks. Place a stoploss of Rs 37.50. (Analyst: Nagaraj Shetti, Technical Research Analyst, HDFC securities)
The downward correction in the stock price seems to be over as the stock price has witnessed a sustainable upside bounce in the last couple of weeks. The stock price is placed near the key overhead r..
Read More
After the formation of important bottom reversal at Rs 385 in the month of March 20, the stock price has witnessed a sustained uptrend over the last few months. The analyst observes positive chart patterns like higher tops and bottoms on weekly timeframe chart. After moving into a narrow range in the previous couple of weeks, the stock shifted into an upside bounce in the last week and closed higher. Volume expanded during upside breakout. One may look to buy Grasim at CMP, add more on dips down to Rs 640 and wait for the upside target of Rs 750 in the next 3-5 weeks. Place a stoploss of Rs 618. (Analyst: Nagaraj Shetti, Technical Research Analyst, HDFC securities)
After the formation of important bottom reversal at Rs 385 in the month of March 20, the stock price has witnessed a sustained uptrend over the last few months. The analyst observes positive chart pa..
Read More
On the daily chart, Apollo Tyres has broken out from a bullish flag pattern resuming uptrend. A sustained trade will extend the gains to levels of Rs 138-145. Further, it closed beyond its 200-DMA placed at Rs 129 on Friday for the first time after 2018, suggesting a strong trend reversal. Moreover, volumes have been encouraging in the recent upmove indicating strength in the bull trend. RSI has formed a positive reversal i.e. price making a higher low and RSI made a lower low which is sign of bullishness. The stock can be bought in the range of Rs 130-132 for targets of Rs 138-145, keeping a stop loss below 125. (Analyst: Aditya Agarwala, Senior Technical Analyst, YES Securities)
On the daily chart, Apollo Tyres has broken out from a bullish flag pattern resuming uptrend. A sustained trade will extend the gains to levels of Rs 138-145. Further, it closed beyond its 200-DMA pl..
Read More

Out of 104 BSE500 stocks, where FPI exposure is in excess of 20 per cent, 72 have beaten Sensex’s 2.8 per cent return for the month so far. Some 16 of these stocks have gained 100-300 per cent since the BSE Sensex hit 52-week low on March 24. The 30-pack is up 50 per cent from the low level.

ADVERTISEMENT
“FPI flows into equity can be expected to be positive as the direction of the economic prospects, though in the negative zone now, is set to improve with the progress of the ‘unlock’ charter," said Care Ratings.
ADVERTISEMENT
READ MORE

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

More from our Partners

Loading next story
Text Size:AAA
Success
This article has been saved

*

+