The Hindu Business Line : Falls on offloading by FIIs

INDEX heavy weight Reliance Industries was among the major losers in the Sensex and Nifty on Wednesday. The stock was down by 5.06 per cent at Rs 409.80 on the BSE with a volume of 49.27 lakh shares and on the NSE it closed at Rs 411.25, down 4.75 per cent, with a volume of 1.06 crore shares. Dealers said the fall in the stock price has nothing to do with the fundamentals of the company. The talk is that some of the leading US-based FIIs are reducing their exposure in India and the sale in Reliance was part of this. The buzz is that these FIIs in the past few days have already reduced their exposure in ONGC, the stock with highest weightage in the Nifty, and now they are selling Reliance.

Slides on heavy selling

Another stock to take a severe beating on Wednesday was Jammu & Kashmir Bank. Dealers said several big investors, both domestic and foreign, are selling their holding in the bank.

The reason for the sale is that these investors had bought large quantity of shares of banks and J&K Bank was among the list. Most of these investors have already sold other banks' shares and now they are selling J&K Bank. Dealers said overall fundamentals of the bank are intact and it would not be affected due to the recent Government decision to increase lending to farm sector. There has been selling in public sector banks after the Government decision. On Wednesday, the Jammu & Kashmir Bank stock was down by 9.52 per cent at Rs 264.10 on the BSE with a volume of 38,000 shares and on the NSE it closed at Rs 266.80, down 8.90 per cent, with a volume of 1.81 lakh shares.

Back on buy list

AFTER the last week dip in pharma stocks, they are back on buy list of several institutional investors. If the market talk is to be believed some of the foreign broking firms are recommending their clients to buy pharma stocks on every dip.

Last week, foreign broking firm CLSA downgraded the pharma stocks. Dealers said the pharma story is still intact and the growth of these companies is likely to continue in the next few years. Among the stocks that were bought on Wednesday included Ranbaxy, Lupin, Dr Reddy's Laboratories, and Dishman Pharma.

Virendra Verma

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