Blue chips worth $150 billion up for grabs for Foreign Institutional Investors
But a study of the the shareholding data for the quarter ended June 2014 shows FIIs can still buy $150 billion worth of stocks in the MSCI India stocks or $135 billion in Nifty stocks.
To put things in context, the highest FII investment in stocks in a year was about $25 billion in 2010. IT services, oil & gas, banks, telecom, consumer staples and metals & mining have the highest capacities to absorb FII infows.
But the problem is that barring banks and telecom, FIIs are underweight on rest of the sectors. Among the MSCI India stocks, FIIs are most overweight on ICICI BankBSE -1.65 %, HDFC BankBSE -0.69 %, Tata MotorsBSE -1.89 %, PowerGrid and Tech MahindraBSE 0.69 %. They are most underweight on Reliance IndustriesBSE -1.61 %, InfosysBSE 0.42 %, Hindustan UnileverBSE 3.69 %, TCSBSE -0.62 % and WiproBSE 0.86 %.
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