18 August 2020
India Strategy
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Nifty-50: 11,385
Ownership analysis – DII stake in Nifty-500 hits 5-year high
FII/DII ownership ratio unchanged at 1.4x; FIIs/DIIs raise stakes in Insurance
Benchmark Indices – Nifty-50/Nifty Midcap-100 – have recovered from their Mar’20
lows gaining 50%/52%. Further, YTD CY20, Nifty-50/Nifty Midcap-100 are down 6%/3%,
recovering almost all losses for CY20 in tandem with the rise in global equity markets.
Divergent sequential trends are being witnessed between FII and DII purchases. While
DIIs increased weights in Telecom/Technology sectors, FIIs reduced theirs QoQ. On the
hand, FIIs increased weights in Oil and Gas (O&G), Capital Goods and Retail, while DIIs
trimmed theirs QoQ.
Notably, in the Jun’20 quarter, DIIs/FIIs both saw inflows of USD1.7b/USD4.2b.
In this report, we take a deep dive into the ownership of various sectors/companies in
the Nifty-500 to see how it has changed during 1QFY21.
FII ownership in Nifty-500 remains near 5-year lows
Nifty-500 Institution ownership
(%)
FII (%)
23.6
13.3
22.3 22.2
12.7
12.4
11.3
13.8
22.1
20.8 20.8
DII (%)
14.6 14.7
21.4
Sectors which saw an increase in
institutional stake
FII QoQ chg (bp)
DII QoQ chg (bp)
FII holdings in the Nifty-500 remained near 5-year lows in 1QFY21 – it marginally
increased by 8bp QoQ, but declined 130bp YoY to 20.8%. DII holdings were also
marginally up in the Nifty-500 by 7bp QoQ/90bp YoY to 14.7%.
FIIs have reduced ownership in 68%/74% of Nifty-500/Nifty-50 companies QoQ,
while DIIs increased stake in 50%/68% of Nifty-500/Nifty-50 companies QoQ.
A mixed trend was witnessed in promoter stake holdings – it declined marginally
by 15bp QoQ, but was up 140bp YoY to 50.6%. Some large companies like HDFC
Life Insurance, Kotak Mahindra Bank, HDFC AMC, HUL, SBI Life Insurance, and
Bharti Airtel saw reduction in promoter stake due to stake sale, M&A and
capital raising exercise. Godrej Industries, Indian Bank, PNB, Mahindra CIE,
Adani Ports saw an increase in promoter stake QoQ.
As a proportion of free float of the Nifty-500, FII ownership stayed flattish QoQ
to 42.2%, while DII ownership rose marginally by 4bp QoQ/250bp YoY to 29.7%.
In 1QFY21, SIP inflows decreased to INR 79.2b in Jun’20 from the high witnessed
in Apr’20 (INR83.7b). It stood at INR78.3b in Jul’20. The FII-DII ownership ratio in
the Nifty-500 remained at 1.4x in 1QFY21 (unchanged from the previous
quarter).
In the last one year, an increase in the FII-DII ratio was recorded in the Insurance
sector. Telecom, NBFC, Private Banks, Cement, Automobiles, Retail, Healthcare
and Technology were the main sectors to see a decline.
Sector holdings: Institutions record highest QoQ change in Insurance,
Consumer
In the Nifty-500, FIIs have the highest ownership in Private Banks (44%),
followed by NBFCs (31.6%), O&G (22.4%), Telecom (20.6%) and Real Estate
(20.5%). DIIs have the highest ownership in Capital Goods (22.1%), Metals
(21.5%), Private Banks (20.2%), Utilities (18.8%) and Autos (16.3%).
Sequentially, FIIs have increased stake in Insurance (+170bp), Consumer
(+110bp), O&G (+110bp), Auto (+60bp), Healthcare (+40bp), Retail (+30bp),
Capital Goods (+20bp) and Real Estate (+10bp). In contrast, FIIs reduced stake in
Gautam Duggad – Research Analyst
(Gautam.Duggad@MotilalOswal.com)
Deven Mistry – Research Analyst
(Deven@MotilalOswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
India Strategy
FII sectoral allocations within
Nifty-500 (%)
Banks-PVT
Oil & Gas
NBFC
Technology
Consumer
Auto
Healthcare
Telecom
Insurance
Utilities
Cap Goods
Cement
Retail
Metals
Real Estate
Banks-PSU
12.8
12.4
11.4
10.1
5.3
5.1
3.0
2.6
2.4
2.0
1.7
1.5
0.9
0.8
0.6
22.4
PSU Banks (-220bp), NBFCs (-180bp), Telecom (-110bp), Technology (-40bp),
Cement (-40bp), Private Banks (-40bp), Metals (-20bp) and Utilities (-20bp).
On a QoQ basis, DIIs increased stake in Telecom (+100bp), Auto (+80bp),
Insurance (+60bp), Consumer (+40bp), and Technology (+30bp). PSU Banks (-
260bp), Capital Goods (-80bp) and Utilities (-70bp) were the major sectors
where DIIs reduced stake by more than 50bp.
Financials had a dominant run over the past few years. However, BFSI’s (Private
Banks, NBFCs, Insurance and PSU Banks) underperformance continued to reflect
in FII allocation, which was down from 45.2% in Dec’19 to 40% in Mar’20 to 38%
as at Jun’20 in the Nifty-500. This has resulted in trimming of weight by 200bp
QoQ/470bp YoY. However, FIIs still remain significantly overweight in BFSI by
900bp v/s Nifty-500 (BFSI weight in Nifty-500 currently stands at 29.0%).
BFSI is followed by O&G with 12.8% weight, up 220bp QoQ/330bp YoY. This is
majorly due to an increase in FII holding in Reliance from 25.9% in Mar’20 to
26.6% in Jun’20. O&G is followed by Technology (11.4%) and Consumer (10.1%)
– both sectors have seen QoQ decline in weight by 80bp and 30bp, respectively.
Overall, the top-5 sectoral holdings of FIIs in the Nifty-500 account for 77.6% of
total allocations – these sectors are (a) BFSI (38%), (b) O&G (12.8%), (c)
Technology (11.4%), (d) Consumer (10.1%), and (e) Auto (5.3%). Healthcare still
stands at the sixth position in terms of FII allocation despite its recent
outperformance v/s the market.
FIIs are significantly overweight (v/s Nifty-500) in Private Banks/NBFCs and are
underweight in Consumer, Capital Goods, Healthcare and Technology.
On QoQ basis, FIIs have increased weight in O&G, Autos, Healthcare, Telecom
and Insurance. While NBFCs, Private Banks, Technology, Consumer, PSU Banks
and Retail have seen a reduction.
In terms of absolute holdings, out of total FII holding of USD362b, Private Banks
is at the top with USD81b investment value.
Underperformance in BFSI results in FII allocation decline
DII sectoral allocations within
Nifty-500 (%)
Banks-PVT
Consumer
Oil & Gas
Technology
NBFC
Auto
Healthcare
Cap Goods
Utilities
Metals
Telecom
Cement
Banks-PSU
Insurance
Retail
Real Estate
6.4
6.3
6.3
5.1
4.3
3.3
3.1
2.8
2.5
1.6
1.4
0.3
9.8
14.6
13.1
12.0
DIIs overweight in Utilities, Capital Goods, Metals and PSU Banks
Using Nifty-500 as the benchmark, DIIs are significantly overweight in Utilities,
Capital Goods, Metals and PSU Banks and underweight in NBFCs, Technology,
Private Banks, and O&G.
Overall, the top-5 sectoral holdings of DIIs in the Nifty-500 account for 66.4% of
total allocations – these sectors are (a) BFSI (25.2%), (b) Consumer (13.1%), (c)
O&G (12%), (d) Technology (9.8%), and (e) Autos (6.3%). Autos and Healthcare
(6.3%) remain neck-to-neck for the fifth position and are now closing in on
NBFCs, which is at 6.4%.
In 1QFY21, sectors that witnessed increase in weight by DIIs on QoQ basis are
O&G (+140bp), Automobiles (+100bp), Telecom (+60bp), Healthcare (+50bp),
Metals (+20bp), Cement (+10bp) and Insurance (+10bp). Consumer, PSU Banks,
Private Banks, Technology, Retail, NBFC, Capital Goods and Utilities saw
reduction in weight.
Out of total DII holding of USD255b in the Nifty-500, Private Banks is at the top
with USD37b, followed by Consumer at USD33b and O&G at USD31b.
18 August 2020
2
 Motilal Oswal Financial Services
India Strategy
Nifty-50: FIIs reduce holdings in 74% of stocks; DIIs increase in 68% of stocks
FIIs reduced stake in 74% of Nifty-50 companies on QoQ basis, while DIIs
increased stake in 68% of Nifty-50 companies.
Kotak Bank, HUL, HDFC Life Insurance, L&T and Asian Paints were the top stocks
to witness an increase of more than 1% in FII holdings on QoQ basis.
JSW Steel, SBI, Power Grid, Hero Moto and Bharti Infratel were the top stocks to
see decline in FII holdings by more than 1.5% QoQ basis.
Top increase in DII holdings in Nifty stocks on QoQ basis was seen in Kotak Bank,
Bharti Airtel, Hero Moto, HUL, Power Grid and M&M which saw an increase of
more than 1.5%. L&T, Grasim Industries, Cipla and Zee saw declines in DII
holding by more than 1% on QoQ basis.
FII ownership in Nifty-500 increases marginally from 5-year lows in Mar’20
FII holdings have increased 10bp QoQ/-130bp YoY to 20.8% in the Nifty-500 in
1QFY21. FIIs have reduced ownership in 68% of Nifty-500 and 74% of Nifty-50
companies QoQ.
DII holding in Nifty-500 was up 7bp QoQ/90bp YoY to 14.7% in 1QFY21. DIIs
have increased stake in 50% of Nifty-500 and 68% of Nifty-50 companies QoQ.
Further, promoter’s stake holding declined marginally by 15bpQoQ, although it
was up 140bp YoY to 50.6% as there was a mixed trend seen from promoters.
Some large companies like HDFC Life Insurance, Kotak Mahindra Bank, HDFC
AMC, HUL, SBI Life Insurance and Bharti Airtel saw reduction in promoter stake
due to stake sale, M&A and capital raising exercise. Godrej Industries, Indian
Bank, PNB, Mahindra CIE, Adani Ports, etc. saw increase in promoter stake.
As a proportion of free float of the Nifty-500, FII and DII ownership stayed
flattish QoQ to 42.2% and 29.7%, respectively.
Exhibit 1: Nifty-500 holding pattern (%)
Value
USDB 1,411
14.6
11.3
Promoter
FIIs
DIIs
Public
1,369
15.9
12.4
22.3
1,743
16.0
12.7
22.2
1,966
15.2
13.3
21.4
2,038
14.9
13.8
22.1
1,494
13.9
14.6
20.8
1,739
13.9
14.7
20.8
FII holdings near 5-
year lows at 20.8%
in 1QFY21.
23.6
50.5
49.4
49.1
50.0
49.2
50.7
50.6
Jun-15
Jun-16
Jun-17
Jun-18
Jun-19
Mar-20
Jun-20
Exhibit data is sourced from Capitaline and MOFSL database. FIIs include Depository Receipts.
18 August 2020
3
 Motilal Oswal Financial Services
India Strategy
Exhibit 2: Nifty-50 holding pattern (%)
Value
USDB
903
14.4
12.0
27.7
Promoter
FIIs
DIIs
Public
853
16.3
13.1
26.6
1,033
16.1
13.9
27.2
1,170
15.1
14.6
26.7
1,266
15.0
15.2
27.1
924
14.0
16.2
25.5
1,059
13.9
16.6
25.8
FII and DII holdings
increase
sequentially by
33bp each for Nifty-
50 in 1QFY21.
45.9
44.0
42.7
43.6
42.8
44.3
43.8
Jun-15
Jun-16
Jun-17
Jun-18
Jun-19
Mar-20
Jun-20
Exhibit 3: QoQ change in stake (number of companies)
Increase in stake
Decrease in stake
Unchanged
Total
Nifty-500
142
341
18
501
FIIs
Nifty-50
13
37
0
50
Nifty-500
250
231
20
501
DIIs
Nifty-50
34
16
0
50
Exhibit 4:
Trend in FII and DII holdings for
Nifty-500 (%)
FII Holding (%) - LHS
24.5
23.6
23.5
22.5
21.5
20.5
12.4
22.3
11.3
12.7
22.2
21.4
22.1
20.8
13.3
13.8
DII Holding (%) - RHS
14.7
15.0
14.6
13.8
12.5
11.3
20.8
10.0
Exhibit 5: Share of FIIs and DII see marginal increase QoQ
FII proportion of free float (%) - LHS
DII proportion of free float (%) - RHS
29.7
29.7
24.5
44.0
27.2
43.5
42.1
42.2
49.0
47.0
45.0
43.0
41.0
47.7
30.0
27.5
25.0
22.5
20.0
22.9
Nifty-500: Sectoral holdings as proportion of free float
FII holdings as % of free float holding is greater than 50% in Real Estate,
Insurance, Private Banks, NBFCs and Telecom for Nifty-500 companies as at
1QFY21.
DII holdings as % of free float holding is the highest in PSU Banks (54%),
followed by Utilities (48%), Metals (47%) and Capital Goods (39%).
18 August 2020
4
 Motilal Oswal Financial Services
India Strategy
Exhibit 6: Real Estate, Insurance, Pvt. Banks, NBFC and Telecom have FII holdings greater than 50% of free float holding
62
57
56
54
50
FII proportion of free float holding (%)
46
45
39
38
37
35
32
31
21
18
18
Exhibit 7: On a free float basis, DIIs own a larger chunk of PSU Banks, Utilities, Metals and Capital Goods companies
54
48
47
DII proportion of free float holding (%)
39
36
35
33
30
30
29
28
26
25
24
20
14
18 August 2020
5
 Motilal Oswal Financial Services
India Strategy
FII-DII ownership ratio unchanged from 4QFY20
The FII-DII ownership ratio in the Nifty-500 remained at 1.4x in 1QFY21
(unchanged from the previous quarter) and was down from 2.1x in Jun’15.
Over the last one year, an increase in the FII-DII ratio was recorded in the
Insurance sector.
Telecom, NBFC, Private Banks, Cement, Automobiles, Retail, Healthcare and
Technology were the key sectors to see a decline.
Exhibit 8: Trend in Nifty-500 FII-DII ownership ratio
2.1
FII-DII ratio
2.0
1.9
1.8
1.8 1.8
1.8 1.8 1.7 1.8
FII-DII ownership
ratio has declined
to 1.4x from 2.2x in
the last 5 years.
1.6 1.6 1.6
1.6
1.5
1.6 1.6
1.5 1.5
1.4 1.4
Exhibit 9: Sectoral FII-DII ratio change in the last one year
Chg
0.6
-
-
-
Jun-19
4.5
4.4
Jun-20
3.3
2.2
1.7
2.3
1.1
1.1
1.5
1.5
0.8
0.8
0.6
0.5
0.5
0.4
1.9
1.7
0.5
0.3
1.4
1.2
1.8
1.5
1.5
1.2
1.2
0.9
2.6
2.7
2.5
1.4
Sector holdings: Institutions record highest QoQ change in Telecom, NBFCs
In the Nifty-500, FIIs have the highest ownership in Private Banks (44%),
followed by NBFCs (31.6%), O&G (22.4%), Telecom (20.6%) and Real Estate
(20.5%). DIIs have the highest ownership in Capital Goods (22.1%), Metals
(21.5%), Private Banks (20.2%), Utilities (18.8%) and Autos (16.3%).
Sequentially, FIIs have increased stake in Insurance (+170bp), Consumer
(+110bp), O&G (+110bp), Auto (+60bp), Healthcare (+40bp), Retail (+30bp),
Capital Goods (+20bp) and Real Estate (+10bp). In contrast, FIIs reduced stake in
PSU Banks (-220bp), NBFCs (-180bp), Telecom (-110bp), Technology (-40bp),
Cement (-40bp), Private Banks (-40bp), Metals (-20bp) and Utilities (-20bp).
On a QoQ basis, DIIs increased stake in Telecom (+100bp), Auto (+80bp),
Insurance (+60bp), Consumer (+40bp), and Technology (+30bp). PSU Banks (-
260bp), Capital Goods (-80bp) and Utilities (-70bp) were the major sectors
where DIIs reduced stake by more than 50bp.
6
18 August 2020
 Motilal Oswal Financial Services
India Strategy
Exhibit 10: Sectoral FII and DII holdings in Nifty-500
FII Holding (%)
DII Holding (%)
Exhibit 11: Change in FII and DII holdings (QoQ)
FII QoQ chg (bp)
DII QoQ chg (bp)
Exhibit 12: Change in FII and DII holdings (YoY)
FII YoY chg (bp)
DII YoY chg (bp)
18 August 2020
7
 Motilal Oswal Financial Services
India Strategy
Underperformance in BFSI results in FII allocation decline
Financials had a dominant run over the past few years. However, BFSI’s (Private
Banks, NBFCs, Insurance and PSU Banks) underperformance continued to reflect
in FII allocation, which was down from 45.2% in Dec’19 to 40% in Mar’20 to 38%
as at Jun’20 in the Nifty-500. This has resulted in trimming of weight by 200bp
QoQ/470bp YoY. However, FIIs still remain significantly overweight in BFSI by
900bp v/s Nifty-500 (BFSI weight in Nifty-500 currently stands at 29.0%).
BFSI is followed by O&G with 12.8% weight, up 220bp QoQ/330bp YoY. This is
majorly due to an increase in FII holding in Reliance from 25.9% in Mar’20 to
26.6% in Jun’20. O&G is followed by Technology (11.4%) and Consumer (10.1%)
– both sectors have seen QoQ decline in weight by 80bp and 30bp, respectively.
Overall, the top-5 sectoral holdings of FIIs in the Nifty-500 account for 77.6% of
total allocations – these sectors are (a) BFSI (38%), (b) O&G (12.8%), (c)
Technology (11.4%), (d) Consumer (10.1%), and (e) Auto (5.3%). Healthcare still
stands at the sixth position in terms of FII allocation despite its recent
outperformance v/s the market.
FIIs are significantly overweight (v/s Nifty-500) in Private Banks/NBFCs and are
underweight in Consumer, Capital Goods, Healthcare and Technology.
On QoQ basis, FIIs have increased weight in O&G, Autos, Healthcare, Telecom
and Insurance. While NBFCs, Private Banks, Technology, Consumer, PSU Banks
and Retail have seen a reduction.
In terms of absolute holdings, out of total FII holding of USD362b, Private Banks
is at the top with USD81b investment value
QoQ
Chg
(pp)
-0.9
2.2
-1.0
-0.8
-0.3
0.7
0.4
0.2
0.2
-0.1
0.0
-0.1
0.0
-0.2
0.0
0.0
0.0
0.0
-0.3
0.0
0.0
0.0
Exhibit 13: FII sectoral allocation for Nifty 500 –
BFSI underperformance results in decline in FII allocation
Sector
Banks-Private
Oil & Gas
NBFC
Technology
Consumer
Automobiles
Healthcare
Telecom
Insurance
Utilities
Capital Goods
Others
Cement
Retail
Chemicals
Metals
Real Estate
Infrastructure
Banks-PSU
Media
Logistics
Textiles
Nifty-500
FII Value
Chg QoQ Chg YoY FII Weight
Jun-20
(USDb) (USDb)
(%)
(USDb)
81
9
-33
22.4
47
14
4
12.8
45
3
-21
12.4
41
3
-10
11.4
37
4
0
10.1
19
5
-7
5.3
19
4
1
5.1
11
2
1
3.0
9
2
4
2.6
9
1
-3
2.4
7
1
-5
2.0
7
1
-3
1.8
6
1
-3
1.7
5
0
-1
1.5
5
1
-1
1.3
3
1
-3
0.9
3
0
-1
0.8
3
0
-1
0.7
2
-1
-4
0.6
2
0
-1
0.6
1
0
-1
0.3
1
0
0
0.2
362
52
-88
100
YoY Chg Nifty 500
FIIs vs Nifty500 weight UW/OW (pp)
(pp)
Weight (%)
-3.0
3.3
-2.2
0.0
2.0
-0.5
1.2
0.8
1.3
-0.1
-0.7
-0.2
-0.3
0.1
0.0
-0.4
-0.1
-0.2
-0.8
-0.2
-0.1
0.0
16.2
12.6
9.5
12.4
12.2
5.9
6.6
2.5
2.0
2.5
3.5
2.7
2.4
1.6
2.2
1.7
0.5
0.7
1.4
0.4
0.2
0.4
100
6.3
0.3
2.9
-1.0
-2.1
-0.6
-1.5
0.6
0.7
-0.1
-1.5
-0.9
-0.7
-0.1
-0.9
-0.8
0.3
0.0
-0.8
0.2
0.1
-0.2
18 August 2020
8
 Motilal Oswal Financial Services
India Strategy
Exhibit 14: FIIs’ sectoral allocation comparison QoQ (%)
Chg
bps
220
80
40
20
20
-
-
-
-
Jun-20
Mar-20
Exhibit 15: FIIs’ sectoral allocation comparison YoY (%)
Chg
bps
330
-
200
120
80
130
10
Jun-20
Jun-19
DIIs overweight in Utilities, Capital Goods, Metals and PSU Banks
Using Nifty-500 as the benchmark, DIIs are significantly overweight in Utilities,
Capital Goods, Metals and PSU Banks and underweight in NBFCs, Technology,
Private Banks, and O&G.
Overall, the top-5 sectoral holdings of DIIs in the Nifty-500 account for 66.4% of
total allocations – these sectors are (a) BFSI (25.2%), (b) Consumer (13.1%), (c)
O&G (12%), (d) Technology (9.8%), and (e) Autos (6.3%). Autos and Healthcare
(6.3%) remain neck-to-neck for the fifth position and are now closing in on
NBFCs, which is at 6.4%.
In 1QFY21, sectors that witnessed increase in weight by DIIs on QoQ basis are
O&G (+140bp), Automobiles (+100bp), Telecom (+60bp), Healthcare (+50bp),
Metals (+20bp), Cement (+10bp) and Insurance (+10bp). Consumer, PSU Banks,
Private Banks, Technology, Retail, NBFC, Capital Goods and Utilities saw
reduction in weight.
Out of total DII holding of USD255b in the Nifty-500, Private Banks is at the top
with USD37b, followed by Consumer at USD33b and O&G at USD31b.
18 August 2020
9
 Motilal Oswal Financial Services
India Strategy
Exhibit 16: DII sectoral allocation for Nifty 500 – Underweight in NBFCs, Technology, Private Banks and O&G
Sector
Banks-PVT
Consumer
Oil & Gas
Technology
NBFC
Automobiles
Healthcare
Capital Goods
Utilities
Metals
Telecom
Others
Cement
Banks-PSU
Chemicals
Insurance
Retail
Infrastructure
Textiles
Media
Real Estate
Logistics
Nifty-500
DII Value
Nifty 500
Chg QoQ Chg YoY DII Weight QoQ Chg YoY Chg
Jun-20
Weight DIIs vs Nifty500 weight UW/OW (pp)
(USDb) (USDb)
(%)
(pp)
(pp)
(USDb)
(%)
37
33
31
25
16
16
16
13
11
8
8
7
7
6
6
4
4
3
1
1
1
1
255
4
3
7
3
2
4
3
1
1
2
2
1
1
-1
1
1
0
1
0
0
0
0
37
-6
-1
2
-2
-3
-1
4
-7
-3
-3
4
-1
0
-8
1
1
0
-1
0
-1
0
0
-26
14.6
13.1
12.0
9.8
6.4
6.3
6.3
5.1
4.3
3.3
3.1
2.9
2.8
2.5
2.2
1.6
1.4
1.1
0.3
0.3
0.3
0.2
100
-0.4
-1.0
1.4
-0.3
-0.3
1.0
0.5
-0.3
-0.3
0.2
0.6
-0.1
0.1
-0.7
0.1
0.1
-0.3
0.1
0.0
-0.1
0.0
0.0
-0.8
0.9
1.9
0.2
-0.5
0.2
2.0
-2.1
-0.7
-0.9
1.7
-0.1
0.2
-2.5
0.4
0.4
0.2
-0.1
-0.1
-0.2
-0.1
-0.1
16.2
12.2
12.6
12.4
9.5
5.9
6.6
3.5
2.5
1.7
2.5
2.7
2.4
1.4
2.2
2.0
1.6
0.7
0.4
0.4
0.5
0.2
100
-1.6
0.9
-0.6
-2.6
-3.1
0.4
-0.4
1.6
1.8
1.5
0.6
0.2
0.4
1.1
0.0
-0.4
-0.1
0.4
0.0
-0.1
-0.3
0.0
Exhibit 17: DII sectoral allocation comparison QoQ (%)
Chg
bps
130
100
50
Jun-20
Mar-20
20
60
-
10
-
Exhibit 18: DII sectoral allocation comparison YoY (%)
Chg
bps
90
180
20
20
200
Jun-20
Jun-19
170
20
40
20
-
18 August 2020
10
 Motilal Oswal Financial Services
India Strategy
Nifty-50:
FIIs reduce holdings in 74% of stocks; DIIs increase in 68% of stocks
FIIs reduced stake in 74% of Nifty-50 companies on QoQ basis, while DIIs
increased stake in 68% of Nifty-50 companies.
Kotak Bank, HUL, HDFC Life Insurance, L&T and Asian Paints were the top stocks
to witness an increase of more than 1% in FII holdings on QoQ basis.
JSW Steel, SBI, Power Grid, Hero Moto and Bharti Infratel were the top stocks to
see decline in FII holdings by more than 1.5% QoQ basis.
Top increase in DII holdings in Nifty stocks on QoQ basis was seen in Kotak Bank,
Bharti Airtel, Hero Moto, HUL, Power Grid and M&M which saw an increase of
more than 1.5%. L&T, Grasim Industries, Cipla and Zee saw declines in DII
holding by more than 1% on QoQ basis.
Exhibit 19: Nifty-50 FII and DII holding change and allocation
Company
Bajaj Auto
Eicher Motors
Hero Motocorp
M&M
Maruti Suzuki
Tata Motors
Axis Bank
HDFC Bank
ICICI Bank
IndusInd Bank
Kotak Mah. Bank
St Bk of India
HDFC Life Insur.
Bajaj Finance
Bajaj Finserv
HDFC
Larsen & Toubro
Grasim Inds
Shree Cement
UltraTech Cem.
UPL
Asian Paints
Britannia Inds.
Hind. Unilever
ITC
Nestle India
Cipla
Dr Reddy's Labs
Sun Pharma.Inds.
Adani Ports
Zee Entertainmen
Hindalco Inds.
JSW Steel
Tata Steel
BPCL
GAIL (India)
Sector
Automobiles
Automobiles
Automobiles
Automobiles
Automobiles
Automobiles
Banks-Private
Banks-Private
Banks-Private
Banks-Private
Banks-Private
Banks-PSU
Insurance
NBFC
NBFC
NBFC
Capital Goods
Cement
Cement
Cement
Chemicals
Consumer
Consumer
Consumer
Consumer
Consumer
Healthcare
Healthcare
Healthcare
Infrastructure
Media
Metals
Metals
Metals
Oil & Gas
Oil & Gas
FII Holding (%)
YoY
QoQ
Jun-20
Chg (pp) Chg (pp)
13.7
-0.9
-0.2
27.0
-6.2
-0.8
32.7
-2.5
-1.6
41.1
-0.8
-0.3
21.5
-1.7
-0.2
15.6
-3.9
-1.2
47.0
-2.6
0.4
48.8
-1.4
0.3
53.4
-3.4
-1.1
56.5
-0.2
-1.4
42.2
1.6
3.0
9.1
-3.0
-1.7
23.6
11.8
2.5
21.5
-0.2
0.0
8.2
-0.8
-0.6
70.2
-4.5
-0.7
19.9
-1.4
2.0
12.9
-5.6
-0.9
11.6
-0.7
-0.4
16.2
-2.5
-0.4
40.6
-2.4
-1.4
18.2
1.6
1.0
14.7
-1.0
-0.1
14.8
2.8
2.7
14.7
-2.2
-0.1
12.1
-0.9
0.3
18.7
-7.0
0.7
29.6
-1.4
-0.8
12.7
-2.2
-0.1
17.1
-4.4
-0.5
67.3
20.3
-1.0
18.8
-3.6
-0.1
16.0
-3.7
-1.8
11.8
-2.0
-0.6
12.0
-3.4
-0.3
16.2
-4.9
-0.6
DII Holding (%)
YoY Chg QoQ Chg
Jun-20
(pp)
(pp)
9.1
0.5
0.4
12.1
7.3
0.8
21.7
3.1
1.8
28.5
5.4
1.6
17.1
3.6
0.4
13.4
-2.6
-0.2
24.0
6.4
-0.5
18.0
4.1
0.1
37.8
2.9
1.4
13.4
3.7
-0.7
15.3
3.5
2.6
24.6
1.1
0.2
7.3
2.4
1.2
10.1
1.9
-0.8
6.4
0.1
0.1
18.5
3.8
0.5
36.0
-1.2
-1.9
21.4
0.3
-1.5
11.7
4.8
0.4
14.7
5.9
0.4
13.2
3.2
0.6
9.0
0.0
-0.9
12.7
-0.5
-0.7
8.3
1.4
1.7
42.0
3.7
-0.4
8.8
1.2
-0.4
21.3
5.1
-1.4
14.6
0.9
0.3
20.1
2.1
0.6
16.7
4.0
0.0
9.8
-1.5
-1.2
27.3
2.9
0.6
5.4
1.7
0.5
30.0
-0.3
0.1
21.3
4.9
0.9
27.2
4.4
0.7
Nifty-50
Weight
(%)
0.8
0.6
0.7
1.2
1.8
0.4
2.1
9.6
4.8
0.7
4.3
1.6
1.0
1.8
0.8
6.6
2.4
0.5
0.6
1.0
0.6
1.7
1.0
4.2
3.6
1.3
0.8
1.2
1.2
0.5
0.3
0.5
0.5
0.6
0.7
0.4
FII Weight DII Weight
(%)
(%)
0.5
0.7
0.8
1.3
1.8
0.2
2.6
13.8
5.9
0.9
5.5
0.7
1.3
1.8
0.4
10.3
1.3
0.3
0.5
0.9
0.6
1.4
0.6
3.7
1.7
1.0
0.5
0.9
0.7
0.6
0.5
0.3
0.4
0.2
0.5
0.4
0.6
0.5
0.8
1.4
2.3
0.3
2.1
7.9
6.5
0.3
3.1
2.9
0.6
1.3
0.4
4.2
3.6
0.7
0.7
1.2
0.3
1.1
0.8
3.2
7.6
1.1
0.8
0.7
1.7
0.9
0.1
0.7
0.2
0.8
1.3
0.9
18 August 2020
11
 Motilal Oswal Financial Services
India Strategy
FII Holding (%)
YoY
QoQ
Jun-20
Chg (pp) Chg (pp)
6.3
-1.3
-0.9
8.1
0.3
0.5
26.6
0.4
0.7
17.6
-2.1
-0.2
25.6
-3.0
-0.8
30.9
-2.9
-0.6
15.9
0.0
0.1
39.6
0.7
0.0
8.2
-0.4
-0.6
20.2
-1.9
-0.1
40.6
-3.2
-1.5
7.9
-1.1
-0.4
11.4
-0.2
-1.2
25.3
-2.6
-1.6
25.8
-1.3
0.3
DII Holding (%)
YoY Chg QoQ Chg
Jun-20
(pp)
(pp)
14.0
0.7
0.5
17.4
3.0
-0.5
13.5
1.8
-0.2
11.2
4.3
0.1
10.1
2.1
0.9
25.4
2.4
0.8
8.1
0.2
0.0
13.2
1.2
-0.2
7.6
0.8
0.6
18.4
5.2
2.5
4.9
3.2
1.3
22.3
4.9
0.2
34.7
6.2
1.1
18.3
6.1
1.6
16.6
1.4
0.3
Nifty-50
Weight
(%)
0.5
0.6
14.0
0.9
1.6
7.6
5.1
0.9
0.9
2.8
0.3
0.6
0.9
1.0
100
Company
IOCL
ONGC
Reliance Industr
Titan Company
HCL Technologies
Infosys
TCS
Tech Mahindra
Wipro
Bharti Airtel
Bharti Infratel
Coal India
NTPC
Power Grid Corpn
Nifty-50 Index
Sector
Oil & Gas
Oil & Gas
Oil & Gas
Retail
Technology
Technology
Technology
Technology
Technology
Telecom
Telecom
Utilities
Utilities
Utilities
FII Weight DII Weight
(%)
(%)
0.2
0.4
13.8
0.7
1.9
4.7
6.0
1.0
0.5
3.0
0.8
0.3
0.5
1.1
100
0.8
1.3
10.9
0.7
1.1
6.0
4.7
0.5
0.7
4.2
0.2
1.4
2.5
1.3
100
18 August 2020
12
 Motilal Oswal Financial Services
India Strategy
NOTES
18 August 2020
13
 Motilal Oswal Financial Services
India Strategy
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BUY
SELL
NEUTRAL
UNDER REVIEW
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Expected return (over 12-month)
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< - 10%
> - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
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CIN No.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.Registration Nos.: Motilal Oswal Financial Services Limited
(MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579 ;PMS:INP000006712. Motilal Oswal Asset
Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409)
is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate
Investment Advisors II Pvt. Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. Research & Advisory services is backed by proper research.
Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before
investing. Details of Compliance Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.* MOFSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated
July 30, 2018 issued by Hon'ble National Company Law Tribunal, Mumbai Ben
Disclosure of Interest Statement
Analyst ownership of the stock
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