FPIs pull out over Rs 1 lakh crore in September quarter, select counters still advance

As foreign investors sold shares worth Rs 1.02 lakh crore in the September quarter, the focus has been on companies that have seen the biggest changes in their shareholdings.

Financial services firms, especially non-banking finance companies, saw the biggest churn with foreign fund managers cutting their stakes in several mid- and small-sized lenders, according to an ETIG study of the overseas stakes in the country’s top 500 companies.

The share price movements of companies that saw increases and decreases in foreign holdings in the quarter, however, did not exhibit a concrete trend. In fact, shares of some of the companies, such as Sona BLW Precision Forgings, Five-Star Business Finance, and Tata Communications rose amid the selling by foreign investors. In the September quarter, Nifty and Nifty 500 fell 3.5% and 3.7%, respectively.