The market turned highly volatile as the overseas portfolio investors started the current round of major selloff towards the later part of the September quarter.
While foreign portfolio investors have been withdrawing from most emerging markets ever since the US economy started firing and bond yields there turned more attractive, soaring crude oil prices and a falling rupee only hastened this selloff.
FPIs offloaded stocks worth Rs 6,000 crore in the domestic market in Q2, and at least double that amount in September and October.
Curiously, at the same time, they were busy picking stocks from sectors like chemicals, abrasives, auto ancillary, select private and public banks, pharma and information technology.
Within the BSE500 basket, FPIs raised stakes in almost half or over 200 stocks during the quarter. Among notable names, Aarti Industries saw FPI holding go up to 4.20 percent at the end of September quarter from 3.80 percent at the end of June quarter. Among others, FPI holding went up from 4.02 per cent to 4.11 per cent in Gujarat Fluorochemicals, from 5.47 per cent to 5.59 per cent in Atul, 2.36 per cent to 2.45 per cent in Himadri Speciality Chemicals, 23.95 per cent to 24.41 per cent in Jubilant Life Sciences and 11.83 per cent to 11.87 per cent in Pidilite Industries.
Shares of Aarti Industries and Atul have rallied 10 percent and 17.78 percent, respectively, so far in 2018, whereas those of Himadri Speciality Chemical and Jubilant Life Sciences are down 19 percent and 13.51 percent, respectively. As many as 489 companies from the BSE500 index reported their shareholding patterns for the September quarter till October 21, according to corporate database Ace Equity.