Business Daily from THE HINDU group of publications
Sunday, Aug 19, 2007
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Business Daily from THE HINDU group of publications Sunday, Aug 19, 2007 ePaper |
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Foreign Institutional Investors Markets - Stocks
Kumar Shankar Roy Foreign institutional investors (FIIs) appear to have turned a mite cautious on Indian stocks during March-June 2007, after having gradually pegged up their stakes in the preceding year. Shareholding patterns of Indian companies for the latest June quarter, in comparison to end-March, suggest that FIIs have actually pared down their holdings in 198 of the 500 stocks in the CNX 500 index. Their stakes in 174 companies — accounting for nearly 35 per cent of the CNX 500 — remained stagnant at March levels. Only 17 companies — a mere 3 per cent of the universe under review — have seen significant increases (3 per cent or more) in their FII shareholding in the quarter ended June. These belong mainly to the mid/small-cap universe. In favour
Mid-sized IT firms such as Rolta, Aftek and Polaris Software have witnessed 3-5 per cent increase in FII holding over the quarter. Steel majors JSW Steel and Tata Steel saw FII stakes increase by 5 per cent. They also seemed optimistic about the shipping sector with GE Shipping and Mercator Lines seeing significant increase in foreign holding. Max India, Ruchi Soya Industries and TN Newsprint have seen the largest increases in stakes. While the Government decided to review the cap on sugar exports only in late July, FIIs had hiked their exposure in quite a few sugar companies in the preceding quarter itself. FII stakes increased in Sakthi Sugars, Shree Renuka Sugars, Dhampur Sugars, while there were no major changes in Bajaj Hindusthan, Dwarikesh Sugar and EID Parry. Out of favour
On the other hand, FIIs seemed to have turned bearish on cement companies in the June quarter. FII stakes in large players such as ACC, Ambuja Cement as well as smaller player Visaka Industries witnessed a 4-6 per cent drop; India Cements was the exception and saw an increase in FII holding. FII exposures also declined in construction stocks with Era Construction, Unity Infra and Lanco Infratech witnessing lower FII stakes. Media companies such as Adlabs and Inox Leisure saw foreign investors reducing their stake. Financial institutions such as HDFC, Reliance Capital, Indiabulls Financial Services went out of favour and stocks such as IDFC and SREI Infrastructure emerged the new favourites. Eicher Motors, Punjab Tractors and M&M in the auto sector saw a decline in FII stakes, with Ashok Leyland alone bucking the trend. In absolute terms, Apollo Hospitals, Kajaria Ceramics and SB&T International witnessed the biggest drop in FII shareholding.
Related Stories: FIIs raise exposure in listed public sector banks FIIs’ net investments up Rs 7,330 cr FIIs keep faith in mid-caps FII limit hiked to 75% in Rolta More Stories on : Foreign Institutional Investors | Stocks | Stock Markets
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