FIIs Selling These 5 Stocks in Q1 2024

Are you wondering why FIIs are selling certain stocks in the Indian market? Let’s delve into the details and explore the reasons behind the recent offloading of shares by foreign institutional investors.

The first quarter of 2024 presented a fascinating puzzle for investors in the Indian stock market. Foreign Institutional Investors (FIIs), a crucial source of liquidity, displayed a rollercoaster of buying and selling activity. While they ended the quarter on a seemingly positive note, injecting Rs 33.1 billion (bn) into the cash market in March, their earlier actions cast a shadow of uncertainty.

Data from the National Securities Depository Limited (NSDL) reveals a trend of FII offloading throughout the first two months of the year. January saw significant selling of over Rs 300 bn, mainly from the financial sector. This trend continued in February, with FIIs unloading nearly Rs 100 bn. In 2024 so far, FIIs have sold shares worth Rs 11,372 bn.

#1 Zee Entertainment

First on the list is Zee Entertainment. Zee Entertainment Enterprises is a media and entertainment company engaged in providing broadcasting services. It’s one of India’s leading media and entertainment companies. The company operates through content and broadcasting segments.

The latest shareholding pattern of Zee Entertainment shows that foreign investors (FIIs) sold a 9% stake in the company in the March 2024 quarter. FII holding reduced to 19.2% from 28.2% in the December 2023 quarter, primarily due to significant developments within the company.

The cancellation of the proposed merger between Sony Pictures Networks India and Zee Entertainment on 22nd January was a significant factor. This merger, initiated in 2021 with discussions valued at US$ 10 bn, aimed to establish India’s largest media and entertainment conglomerate. However, regulatory hurdles, legal challenges, and delays led to its eventual demise.

#2 Aster DM Healthcare

Second on the list is Aster DM Healthcare. Aster DM Healthcare operates in multiple segments of the healthcare industry, including hospitals, clinics, and retail pharmacies. The company operates hospitals, clinics, pharmacies, diagnostic centres, educational institutions, and more.

In the latest shareholding update for Aster DM Healthcare, foreign investors (FIIs) have reduced their stake in the company by a significant 7.5% during the March 2024 quarter. This decrease has brought down FII ownership from 41% in the December 2023 quarter to 33.5%.

#3 Jubilant FoodWorks

Third on the list is Jubilant FoodWorks. Part of the Jubilant Bhartia Group, the company has two strong international brands in its portfolio: Domino’s Pizza and Dunkin’ Donuts. It enjoys exclusive rights to develop and operate Domino’s Pizza Restaurants across India, making it the largest franchisee of Domino’s outside the USA.

In the latest shareholding update, foreign investors (FIIs) have notably decreased their stake in Jubilant FoodWorks by 4.6% during the March 2024 quarter, resulting in a decline in FII ownership from 27.8% to 23.2% compared to the December 2023 quarter.

#4 Dhanlaxmi Bank

Fourth on the list is Dhanlaxmi Bank. Dhanlaxmi Bank Ltd was Incorporated in 1927 in Thrissur, Kerala is a publicly held banking company engaged in providing a wide range of banking and financial services, including retail banking, corporate banking, and treasury operations with a major concentration in the Southern states.

The latest shareholding pattern of Zee Entertainment shows that foreign investors (FIIs) sold a 5.8% stake in the company in the March 2024 quarter. FII holding reduced to 6.1% from 11.9% in the December 2023 quarter.

#5 HDFC Bank

Last on the list is HDFC Bank. HDFC Bank is one of India’s largest private-sector banks. It was established in Mumbai in August 1994. Over the years, it has built a strong brand reputation and customer loyalty. It has a network of 6,342 branches and 18,130 ATMs in 3,188 cities/towns.

In the latest shareholding update for HDFC Bank, foreign investors (FIIs) have reduced their stake in the company by a significant 45% during the March 2024 quarter. This decrease has brought down FII ownership from 52.3% in the December 2023 quarter to 47.8%.

In conclusion, one should not sell the stocks that FIIs are selling impulsively. Instead, this decision warrants a thoughtful analysis of various factors to make an informed choice aligned with one’s investment strategy and financial goals. While FII activity can offer insights into market sentiment, it should not be the sole determinant of selling decisions. Investors should assess the reasons behind FII selling, evaluate the company’s fundamentals, consider its valuation, and review their own investment horizon and risk tolerance. Additionally, maintaining a diversified portfolio and staying informed about broader market trends and economic indicators is crucial.

Remember to always approach investment decisions with caution and thorough research, as understanding the market dynamics and FII activities can help you make informed choices for a successful investment portfolio.