FIIs raise stakes in 20 of the 30 listed NBFCs in March quarter, shows data

Post the Infrastructure Leasing and Financial Services (IL&FS) crisis last year, NBFC stocks had corrected as liquidity tightened in the debt market

Foreign institutional investors (FIIs) have raised their stakes in more than a dozen non-banking financial companies (NBFCs) even as domestic fund managers are steering clear due to liquidity concerns in the sector.

According to an analysis of data of the BSE-500 companies, FIIs have raised stakes in 20 of the 30 listed NBFCs in the March quarter (q-o-q or sequential basis). Meanwhile, mutual funds have trimmed stake in 18 NBFCs.

“The valuation of NBFCs had turned quite attractive and that is what prompted FIIs to raise their positions in the sector,” said Gautam Shroff, co-head, institutional equities, Edelweiss Securities.

Post the Infrastructure Leasing