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Our Bureau

Mumbai, Aug. 21 Even as rumours of Lehman Brothers impending write-down float in the market, it has offloaded about Rs 175-crore worth of equities in a single day, according to the BSE data.

Lehman Brothers sold shares of Amtek Auto Ltd, Amtek India Ltd, Cranes Software International Ltd, Fedders Lloyd Corporation Ltd, NIIT Ltd, and Northgate Technologies Ltd, Prajay Engineers Syndicate Ltd.

Amongst the biggest underwriters in the US, it has suffered huge losses in the sub-prime market collapse. The selling of such a large number of stocks means that they are desperate to liquidate their assets, said the head of research of a broking firm. But the Indian markets do not have much reason to worry as somebody would have already stepped in and did huge buying, he added

There were talks of the bank being in financial trouble and it seems that they have sold their stake in these stocks to ease out their financial crisis, said an analyst with a broking firm. Lehman Brothers still have tough times ahead, according to analysts as they might have to write-down huge losses in credit-related investments and other assets in its third quarter earnings, said analysts.

Lehman Brothers has reported losses and write-downs from the collapse of the mortgage market that have already reached more than $8 billion. In a recent report, JPMorgan Chase & Co said that Lehman may write down about $4 billion in credit-related investments and other assets, when it reports fiscal third-quarter earnings next month.

Citigroup Inc, meanwhile, predicted that Lehman may post a third-quarter loss of $3.25 a share. It also added that the company’s asset-related write-downs may amount to $2.9 billion in the quarter. In Amtek Auto Ltd, Lehman Brothers has offloaded Rs 53.65 crore shares and about Rs 39.47 crore in Northgate Technologies. Deutsche Securities bought almost all stocks except of Prajay Engineers Syndicate Ltd from Lehman.

Foreign institutional investors were net sellers by Rs 545.71 crore on Thursday, according to a provisional NSE data. They were net sellers to the tune of Rs 831 crore in August so far and about Rs 28,133 crore in 2008 till now. According to an analyst, who is working with Mumbai-based brokerage firm, this was the main reason why the broad-market witnessed steep fall. The BSE Sensex and the NSE S&P CNX Nifty tumbled by about 3 per cent in today’s trade. “The expectation among the broking circle is that the troubled foreign financial major might resort to heavy selling tomorrow as well,” he added.

More Stories on : Foreign Institutional Investors | Stock Markets

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