India’s HNIs: Bold Investments Amid Market Uncertainty

In a time when the market feels shaky and there’s talk about trade issues with the U.S., wealthy investors in India, known as high net-worth individuals (HNIs), are making bold choices with their money. According to Prime Database, these investors put more than ₹760 crore into struggling Swiggy shares, ₹248 crore into Eternal (previously called Zomato), and ₹342 crore into Jio Financial Services during the March quarter. However, they also quickly sold off shares of Nykaa and Premier Energies, showing they are ready to take risks but also cut losses.

The total amount HNIs had in companies on the NSE (National Stock Exchange) went down by a huge ₹1.02 lakh crore, dropping to ₹8.07 lakh crore by the end of March 2025. This is an 11.27% decrease from the previous quarter. Their portion of shares dropped from 2.09% to 1.98% in just three months. This clearly shows that HNIs were trying to make quick profits and shift their money around during uncertain times.

Swiggy’s stock price fell by 39%, but it still attracted a lot of investment from HNIs, with them buying 1.95 crore extra shares. Eternal Ltd. faced a 27% drop but managed to get ₹248 crore from HNIs. Jio Financial Services, down by almost 24%, still lured in ₹342 crore.

One surprising move was by Nitco Ltd., where HNIs increased their shares by nearly 15 crore—an incredible ₹1,766 crore investment even though the price only slipped by 6%. Companies like Samaan Capital and Windsor Machines also saw a lot of money flowing in despite their share prices dropping significantly.

On the other hand, some stocks were getting a big exit from HNIs. Nykaa’s parent company saw HNIs offload over 3.2 crore shares, selling off ₹543 crore even though the stock went up by 9%. Premier Energies faced a major sell-off, with ₹1,718 crore lost after its price crashed by 31%. Other big sell-offs came from well-known companies like TCS (₹514 crore), Indegene (₹1,972 crore), and IDFC First Bank (₹337 crore). This shows a loss of confidence in companies with high valuations or weak short-term outlooks.

Interestingly, the sell-offs weren’t just because of falling prices. While HNIs increased their investments in 910 companies where the stock dropped by an average of 21.66%, they also sold off shares in 903 companies that had only slightly dropped by an average of 20.06%. This indicates that HNIs were making careful decisions instead of panicking.

What Should Investors Do?
With Nifty valuations now more in line with their 5- and 10-year averages, brokerage firms are still positive about Indian stocks, seeing that the country’s growth outlook remains strong. UBS, in its recent report, shared four reasons for a positive view on Indian markets:
1. A rebound in spending is expected in the next two years after a slow year in 2025.
2. Lower oil prices should help the economy grow and reduce inflation.
3. India seems to be in a good position compared to other Asian countries when dealing with U.S. tariffs and slowing global growth.
4. Current valuations are reasonable, with expected future earnings now matching the last 7–8 years’ average.

UBS is particularly optimistic about sectors linked to consumption like retail, fast-moving consumer goods (FMCG), two-wheeler sales, and travel. They also have a positive view on financials, real estate, cement, and hospitals but are cautious about industries like construction due to expected slow government spending.

Seasonal trends also favor investments in stocks in the upcoming months. Historical data suggests that markets tend to do better from May to December, with the Nifty index increasing in 20 out of the last 24 years during this period, bringing an average return of 15.81%.

Furthermore, foreign institutional investors (FIIs) have been increasing their investments after a period of being net buyers, bringing in ₹40,000 crore in just the last 12 sessions. This trend is expected to continue if global interest rates stabilize and India’s economy stays strong.

(Disclaimer: The advice and opinions in this article are those of the experts and do not necessarily reflect the views of Thellv.news)