Foreign institutional investors have systematically dumped shares in 146 Indian stocks over four consecutive quarters, signaling potential weakness or contrarian opportunities. Major holdings like ITC, Kotak Mahindra Bank, and KPIT Technologies have seen significant FII exits, with some stocks losing over 70 percent of their value. ITC's FII holding collapsed from 39.87 percent to 34.83 percent in a single year, while the stock declined roughly 30 percent. The selling pressure has been concentrated in banks, financials, and IT sectors, driven by structural concerns including the Gulf crisis and AI disruption fears. However, market strategists argue the Indian market remains undervalued, suggesting these exits could present contrarian buying opportunities for long-term investors willing to tolerate volatility.
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