Paytm, ITC, Zomato, Axis Bank shares: As foreign inflows fall, here's how FPI favs fared in August

Foreign portfolio investor (FPI) favourites such as One97 Communications Ltd (Paytm), Delhivery Ltd, Max Healthcare Institute Ltd, Shriram Finance Ltd, Zomato Ltd, Axis Bank Ltd, Max Financial Services Ltd and Apollo Hospitals Enterprise Ltd, among others, have had a mixed show in August, as the pace of foreign inflows slowed down in the month that saw global investors betting on one more Fed rate hike later this year.

Out of 15 top BSE200 FPI favourites, eight delivered up to 14 per cent returns this month; 10 managed to beat Sensex that is down 2.3 per cent for the month. FPIs owned anywhere between 40 per cent and 72 per cent stakes in the 15 BSE200 companies.

Max Financial Services, where FPI ownership stood at 48.46 per cent at the end of June quarter, saw its shares rising 13.76 per cent in August so far. The stock stood at Rs 927.85 at last count against July 31's closing of Rs 815.60. FPI ownership in this NBFC jumped to 48.46 per cent in Q1 from 47.70 per cent in Q4.

Paytm shares climbed 10.28 per cent in August so far. FPIs owned 72.11 per cent stake in the company as of June 30. Founder and CEO Vijay Shekhar Sharma recently entered into an agreement with Antfin (Netherlands) Holding BV to purchase 10.30 per cent stake in the new-age company through his 100 per cent owned overseas entity – Resilient Asset Management B.V. Vijay Shekhar Sharma’s shareholding in Paytm would increase to 19.42 per cent directly and indirectly, whereas Antfin’s shareholding will reduce to 13.5 per cent.

New age companies such as Zomato, Delhivery and PB Fintech saw their shares rising 9.8 per cent, 6.17 per cent and 3 per cent, respectively. FPIs owned 44-65 per cent stakes in these companies.

Shares of Mahindra & Mahindra are up 5 per cent while those of Axis Bank are up 3.8 per cent.

Max Healthcare Institute, ITC and Apollo Hospitals Enterprise fell 5-6.5 per cent during the same period. Kotak Mahindra Bank and ICICI Bank also failed to beat Sensex returns in August so far.

ICICI Securities in a recent note said the most recent surge in US yields from 3.75 per cent to 4.3 per cent was triggered by the rating downgrade by Fitch and is putting pressure on FPI flows towards India. However, the US 10-year bond yield is likely near its upper range given the outlook for inflation, it said.

"This should alleviate concerns around FPI outflows even as structural domestic equity flows in India continue to be positive as evidenced by record-high SIP flows. Growth outlook for India relative to China continues to be robust driven by a strong investment and real estate cycle supported by low NPAs in the system," it said.

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