Check out the mid-cap stocks where FIIs have sold shares

The Indian stock market’s rapid rise to record highs has made several foreign institutional investors (FIIs) more cautious over the past couple of months. As a result, there has been a rush of money towards large-cap counters as investors look for safer bets rather than chasing the riskier mid- and small-cap stocks.

Indeed, FIIs have dumped a clutch of mid-cap stocks over the last few months. Quarterly shareholding data show they cut their stake in as many as 54 listed companies that currently have a valuation between Rs 5,000 crore and Rs 20,000 crore or are presently included in the mid-cap index.

Also Read : Why did FIIs Invest Rs.16,300 crore in September?

A sector-wise analysis shows such stocks are spread across several industries. However, some sectors like financial services and hospital chains stand out.

Top mid-caps where FIIs cut stake

The largest mid-caps that saw offshore portfolio investors turn particularly bearish during the three months ended June 30 include diagnostics chain Thyrocare, Jubilant Ingrevia, Granules, Escorts, PVR, Hinduja Global, Just Dial, Rain Industries, Easy Trip Planners and Ceat.

In all these mid-cap stocks FIIs cut their holding by 3% or more.

To be sure, FII stake shrank the most in Poonawalla Fincorp (previously Magma Fincorp). Their stake skid 13.5% last quarter, but this had to do with fresh capital infusion by the new promoters rather than any actual selloff.

Interestingly, FIIs’ stake in at least two companies fell just ahead of separate deals where those firms are being acquired by other companies. For instance, Thyrocare is being bought by online medicine delivery company PharmEasy. Similarly, Just Dial is being acquired by Reliance Industries. While the Thyrocare deal was announced in late June, the Just Dial transaction was unveiled in July.

Other mid-caps that saw FIIs slash holding 

FIIs cut their stake by two-three percentage points in around half a dozen mid-caps last quarter. These include gold finance company Manappuram Finance, drugmaker Natco Pharma, diversified financial services firm Edelweiss, Heidelberg Cement, Sunteck Realty, auto component maker Mahindra CIE and CCL Products.

Many mid-caps that command a market value of Rs 10,000 or more also saw FIIs selling less than a 2% stake. These companies include broadcaster Sun TV, Sanofi India, developer Prestige Estates, Apollo Tyres, UTI Asset Management, power utility CESC, Galaxy Surfactants, City Union Bank, Redington, and Mahanagar Gas. 

Hospital chains Aster DM Healthcare and Narayana Hrudayalaya also lost favour among FIIs. Fortis, which now commands a market value just over Rs 20,000 crore assigned for a mid-cap firm, is another top hospital chain that saw FIIs turn bearish on its counter.

Tata Chemicals, L&T Finance, Minda Industries, Happiest Minds Technologies, M&M Financial, Zee Entertainment and Endurance Technologies are other such firms that are still seen as a mid-cap even though their current market cap is above the threshold. These companies, too, reported a fall in their FII shareholding.