Hero MotoCorp, Tata Power among the top five stocks with maximum FII exposure

Overseas investors bet heavily on India in the 3 months to June, sending the Sensex shooting up by 15%, the most in any quarter in the past four years. However, FIIs were choosy about stocks, with Hero MotoCorp being the most preferred given its reach, revamped product portfolio and the end of royalty payments to Honda.

The stock is also a strong proxy play for the Indian consumption theme and the swelling middle class, both seen advancing further in case of a revival.

FII holding in Hero rose 3.5 percentage points to 34.13%. Other FII favourites included Kotak Mahindra Bank and Canara Bank.

Tata Group firms Tata Power and Tata Steel were also among the top five preferred stocks.

Overseas investors stayed away from auto ancillary companies such as Exide and Bharat Forge. Other companies in which FIIs cut stakes were Federal Bank and Wipro.

FIIs pumped a net Rs 4,450 crore into equities in the June quarter compared with Rs 3,650 crore in the March quarter and Rs 3,190 crore in the year earlier.