MUMBAI: Betting high on the India growth story, foreign portfolio investors (FPI) have increased their exposure in over 400 companies during the quarter ended September 2014. Market experts said that while fresh investors are restricting their investments to large cap companies, investors who are very familiar with the Indian markets are scouting for opportunities in the small and mid-cap segments.
According to the latest shareholding data filed with the stock exchanges, FPI shareholding in 429 companies have seen an increase during the second quarter of this financial year. Out of them, in about 60 companies, overseas investors have increased their holding by more than 100 per cent.“The first choice of any foreign investors would be to invest in the large cap stocks. With the large cap stocks looking a bit expensive, foreign investors turn towards quality stocks in the small and mid-cap stocks,” said Kishore Ostwal, chairman and managing director, CNI Research.
According to him, foreign investors who had put money before the general elections were sitting on huge profits. “So they had booked some profits and have shifted their focus towards the small and mid-cap counters. There are FPIs who are even willing to invest in companies whose market capitalisation is below '200 crore provided that these companies have good corporate governance standards and better earnings visibility,” added Mr Ostwal.
