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Almost three quarters of foreign institutional investor (FII) investments in the country are concentrated in the top 50 stocks. Foreign investors own shares worth $300 billion, or 41.5 per cent of the country's free-float market capitalisation. According to Credit Suisse, there is room for another $159 billion worth of FII investments in BSE-500 companies. The brokerage, however, expects moderation in foreign flows due to lower investable surplus with oil exporters. It believes domestic institutions will help in offsetting slowdown in FII flows.
"With staples rallying in January and Financials correcting of late, IT could be the next rotational play, with seasonally weak quarters behind," said the brokerage.
