Contra Play: Zomato, Swiggy Among 8 Stocks Where FIIs Exited in Q4—Mutual Funds Rushed In
Synopsis
In a classic case of contrasting strategies, foreign institutional investors (FIIs) and domestic mutual funds took opposite bets on new-age stocks in Q4FY25. While FIIs trimmed stakes in high-profile names like Zomato, Swiggy, and Policybazaar, mutual funds doubled down, signaling strong domestic confidence. CarTrade Tech emerged as the biggest FII favorite, while MFs reduced exposure here. With earnings season around the corner, will these divergent moves pay off?
FIIs vs. Mutual Funds: A Clash of Convictions
The March 2025 quarter revealed a fascinating divide between foreign and domestic investors. An analysis of 14 new-age stocks showed that FIIs cut stakes in 8 companies, including Zomato (now Eternal), Swiggy, and Paytm, while mutual funds aggressively bought the same stocks.
This split highlights a key trend: Mutual funds, with their deeper understanding of India’s digital growth story, are betting big on tech-led disruptors, even as global investors turn cautious amid geopolitical uncertainties (think Trump’s trade wars) and valuation concerns.
Meanwhile, FIIs adopted a selective approach—exiting some stocks while piling into others like CarTrade Tech, which saw a sharp 5.8% jump in FII ownership.
The Big Moves: Who Sold, Who Bought?
Where FIIs Exited & Mutual Funds Stepped In
Eternal (ex-Zomato) – FIIs sold 2.9%, while MFs bought 2.95%
PB Fintech (Policybazaar) – FIIs offloaded 1.9%, MFs added 1.5%
Delhivery – FIIs cut 1.8%, MFs increased holdings
Other Exits: FirstCry (-1.7%), Swiggy (-1.5%), Paytm (-0.5%), Nykaa (-0.2%)
The Odd One Out
MobiKwik saw both FIIs and MFs selling—a rare bearish consensus.
Where FIIs Bought & Mutual Funds Exited
CarTrade Tech – FIIs upped stake by 5.8%, MFs cut 2.15%
Easy Trip & Ola Electric – FIIs increased holdings, MFs trimmed
Honasa Consumer (Mamaearth), Unicommerce – Marginal FII buying, MF selling
Performance Check: Winners & Losers
CarTrade Tech – The star performer, up 132% in 1 year
Paytm – Staged a stunning rebound, surging 131% after regulatory woes
Nykaa & Eternal – Only stocks besides CarTrade in the green YTD
Biggest YTD Losers: MobiKwik (-57%), Netweb Tech (-49%), FirstCry (-45%), Ola & Swiggy (-41%)
What’s Next? Earnings Hold the Key
With Q4 results around the corner, analysts expect divergent trends across sectors:
Zomato & Swiggy: Food delivery growth may slow, but quick commerce could shine.
Nykaa: Likely to sustain profitability.
PB Fintech: ULIP slowdown may hit new premiums, but renewals could support growth.
Paytm: Flat quarter expected, but merchant loans may boost margins.
CarTrade & Delhivery: Strong YoY growth anticipated; Delhivery’s Ecom Express buy could be a game-changer.
Bottom Line
While FIIs played it safe, mutual funds’ bullish stance on India’s digital disruptors suggests long-term faith in their growth. Will earnings justify their bets? Stay tuned.
#StockMarket #Investing #FIIs #MutualFunds #Zomato #Swiggy #Paytm #CarTrade #EarningsSeason
Why This Matters for Investors:
Contrarian Plays: MFs buying where FIIs exited could signal undervaluation.
Sector-Specific Trends: Quick commerce, fintech, and e-commerce face different growth trajectories.
Earnings Impact: Stocks like Paytm and CarTrade could see sharp moves post-results.
Watch this space for updates as corporate earnings unfold! 🚀
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