Zomato, Paytm, Kalyan Jewellers, MCX: FPI favourite shares that rose amid broader outflows in October

Shares of Zomato Ltd, One 97 Communications (Paytm), Kalyan Jewellers India Ltd and Multi Commodity Exchange Of India Ltd (MCX) are among foreign portfolio investor (FPI) favourites, which posted strong gains in October even as monthly FPI outflows hit Rs 22,000 crore mark.

Data showed FPIs have sold Rs 22,850 crore worth domestic equities in October, which is higher than Rs 14,768 crore outflows in September. The FPI trend has turned weak since June when monthly inflows hit a high of Rs 47,148 crore.

Data showed Kalyan Jewellers India, where FPIs held 26.56 per cent stake in September quarter, climbed 27.98 per cent in October so far. The gains were seen as the jeweller reported 27 per cent jump in September quarter sales. The firm will report its Q2 on November 14.

"Despite seasonally weak quarter and strong base Kalyan saw robust growth in revenue momentum indicate the strategy with solid execution helped it achieve this performance. We expect the demand continued to be robust in Q3FY24 and maintain a positive view on FOCO opportunity driving profitability," Centrum Broking said this month.

MCX, where FPI owned 25.31 per cent stake as on September 30, climbed 11.14 per cent in October. Earlier this month, Sebi's technical advisory committee allowed MCX and MCXCCL to Go-live with its new commodity derivative platform. The platform went live from October 16.

Paytm, where FPIs owned 60.92 per cent stake at the end of September, saw its shares rising 7.85 per cent in the ongoing month. Paytm' Q2 results met analysts estimates. Dolat Capital said continued strength in merchant business, calibrated lending growth and improving contribution margins led it to maintain its positive stance on the Paytm stock.

Zomato jumped 6 per cent in October against a 3 per cent drop in Sensex during the same period. ICICI Securities earlier this month said it sees an improvement in profitability of all three Zomato businesses, adding that Zomato valuations were now pretty sensible. It finds the stock worth Rs 160. Godrej Properties Ltd, Five-Star Business Finance Ltd, 360 One Wam Ltd and KPIT Technologies Ltd are among other FPI-heavy stocks seeing gains in an otherwise bad month for FPI heavy stocks.

Data showed out of 73 BSE500 stocks where FPI holding was above 25 per cent at the end of September quarter, 51 delivered negative returns in October.

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