Yes Bank Stocks: Rs 45,000 crore-bet! YES Bank among top 9 FII stock picks in Q3. What should investors do?

During the quarter, FIIs nearly doubled their stake in retail favorite YES Bank from 12.15% to 23.24%. Calculations by the PRIME database by multiplying the difference in September and December stock by the average closing price during the quarter shows that the net purchase of the bank stock was Rs 6,341 crore.

The biggest bet was Axis Bank, which gained 27% in the December quarter. The net purchase is estimated at Rs 9,561 crore. FII’s investment in ICICI Bank has been valued at Rs 8,495 crore.

Other top bets are LTIMindtree (Rs 6,081 crore), L&T (Rs 3,238 crore), HCL Tech (Rs 3,164 crore),

(Rs 3,015 crore), (Rs 2,670 crore) and (Rs 2,135 crore).

At PB Fintech, FII ownership increased from 37.11% to 47.99% in the third quarter. The New Age stock has been a major disappointment for investors, having fallen around 41% over the past year. However, there has been a recovery in recent days.

FIIs also doubled their stakes during the quarter

which has increased by 94% in the last year. FII ownership of the bank increased to 14.88% from 7.82% in the third quarter.

Other stocks that have seen notable increases in FII holdings sequentially are , , , PVR and .FII sale
FII participation fell at 692 companies and rose at 639 companies listed on the NSE in the most recent quarter.

Foreign investors have been seen reducing their holdings in Infosys.

Paytm, , TCS, NDTV and .

FII’s stake in Paytm was reduced from 77.26% in the second quarter to 72.80% in the third quarter, data shows.

What should investors do?
During the quarter, FIIs withdrew Rs. 3,162 crore from the consumer discretionary and oil, gas and consumable fuels sectors while investing Rs. 19,391 crore in financial services and FMCG.

Last month, FIIs were seen trimming their holdings in banks and financials, oil and gas, and consumer discretionary. Metals, construction and auto saw some buying.

Following Nirmala Sitharaman’s budget announcements, analysts say investors should focus on the three themes of investment, consumption and credit growth. Global brokerage firm Jefferies just added Bajaj Finance and

Finance into its model portfolio and also increased bets on L&T and RIL.

The domestic brokerage firm is overweight auto, banking and financial, specialty chemicals and telecom stocks.

“We believe value stock outperformance is likely to continue in H1CY23 and would be led by a rebound in credit growth as well as a rebound in domestic cyclical stocks, consistent with the recovery in the domestic economy,” said Axis analyst Neeraj Chadawar.

(Disclaimer: Experts’ recommendations, suggestions, views and opinions are their own. These do not represent the views of The Economic Times.)