AMC Stocks in focus: HDFC AMC among 3 stocks to buy at huge discount after massive correction from 52-week high

Foreign Institutional Investors (FIIs) have remained net sellers since October 2021, when benchmarks created their highs, till February 2022. The relentless selling by FIIs has not been able to impact the market much due to aggressive buying by Domestic Institutional investors. 

Against Rs 1.88 lakh pulled out by FIIs from Indian equity market between October 2021-february 2022, the DIIs have countered it with net buying of Rs 1.3 lakh crore in the domestic market during the same period.  

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Of the total funds (withdrawn since October 21), the foreign institutional investors pulled out Rs 59,600 crore alone since February 24 when Russia launched full blown out military offensive against Ukraine. During the same period, DIIs pumped in Rs 47,655 crore in the Indian market.  

At 16,975 as on March 16, 2022, the Nifty 50 is still 1600 points short of its life-time high of 18,604 that it touched on October 19.  

Speaking of SIPs (Systematic Investment Plans), against April-September quarter, the SIP accounts have seen an average 19.5% growth in the months thereafter. Besides, in comparison to April-Septemeber2021, monthly SIP participation has also witnessed average 18% growth in the past months.  

FIIs action month-wise in cash market  

Months         FII                         DII                 

Oct 2021      -45720 CR       +42084 CR     

Nov 2021     -41346 CR       +21928 CR 

Dec 2021     -35493 CR       +31231 CR 

Jan 2022      -39901 CR        +30560 CR 

Feb 2022     -25572 CR        +4471 CR 

Average monthly SIP contribution’ (Source: AMFI data ) 

April 2021-Sept 2021: `9400 cr   

Oct 2021-Feb 2022: `11100 cr 

Increase: +18% 

Average Outstanding Number of SIP Accounts (Source: AMFI) 

April 2021-Sept 2021: 4.11 cr   

Oct 2021-Feb 2022: 4.90 cr   

Increase: +19.5% 

Meanwhile, as the markets have corrected significantly from their peak in October 2021, there are three AMC stocks which are available at huge discount from their 52-week high.  

HDFC AMC, which traded on 52-week high value of Rs 3363 per share, is available at nearly 34% discount as on closing price of Rs 2201 on March 16. Similarly, Nippon Life AMC can be bought at 29% discount from its high of Rs 476 per share. 

Nippon Life AMC closed Wednesday at Rs 335 per share. Against 52-week high of Rs 1216 per share, UTI AMC is available at 22% discount on Wednesday's closing price of Rs 942 per share.  

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)