Cutting loose: FIIs turn pessimistic on PSU banks, capex revival

Foreign institutional investors (FIIs) are seeing little value in state-owned banks and capital goods companies. The shareholding pattern for the December quarter of BSE-500 companies shows that FIIs have pared stake in a dozen state-owned banks listed on the exchanges.
 
FIIs also don’t seem to be buying the capex cycle revival story as they have cut stake in at least 17 capital goods companies.
 
Their bearish stance on PSU banks and the capital goods sector seems to be in contrast with the domestic mutual fund’s (MF’s) outlook on these segments. While FIIs have cut stake in 17 of