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Domestic financial institutions (FIs) seem to be lapping up shares that are being sold by foreign institutional investors (FIIs).FIIs have decreased their stakes in 15 Nifty stocks while FIs have increased their stake in 10 of them.The data compiled by Moneycontrol from the shareholding patterns of these movers and shakers of Dalal Streetin the 50-stock benchmark Nifty during the fiscal 2005-06 seems to suggest that.

This is not to say that FIIs have not been buying into other Nifty stocks. In fact, they have increased their stakes by over 5 per cent in stocks such as Satyam, Dr Reddy's, OBC, Tata Steel, M&M and ACC.

FIIs, in fact, increased their stake in ACC by over 11.72 per cent.

While FIIs decreased their stakes ranging between 0.24 and 9.67 per cent in 15 Nifty stocks over the said period, FIs increased their stakes between 0.67 and 10.59 per cent in 10 of them. The remaining five stocks witnessed marginal declines by both these groups with ACC being the notable exception, where domestic institutions sold 12.63 per cent of their holdings during the period.

FIs increased stakes in HLL, Maruti Udyog, MTNL, Tata Tea, SCI, Jet Airways, Grasim, Ranbaxy, ITC and Zee Telefilms. However, MFs followed FIIs in selling their stakes in BHEL, ACC, Reliance Energy, Reliance and Hindalco.

Interestingly though, the market cap of 13 companies out of the 15 under scrutiny saw a jump on account of a general re-rating and demand from mutual funds, retail investors and in some cases, the management. However, there are exceptions such as Ranbaxy and Jet Airways, where market caps declined by Rs 2,658 crore and Rs 1,976 crore respectively. Nevertheless, FIs increased their stakes by 1.51 per cent in Ranbaxy and 3.99 per cent in Jet.

In Zee Telefilms, FIIs sold 9.67 per cent of their stake while domestic MFs increased their stake by 10.59 per cent during the period. Even in auto major Maruti, FIs increased their stake by almost 9 per cent against 0.59 per cent fall of FIIs holding in the counter.

Other Nifty companies where FI interest increased include Tata Tea (3.67 per cent), Grasim (2.66 per cent), ITC (2.39 per cent), SCI (2.06 per cent), HLL (1.35 per cent), MTNL (0.67 per cent) and SBI (0.07 per cent). FIIs, however, cannot increase their stake in SBI due to the 20 per cent cap fixed for FII holding in PSU banks.

More Stories on : Insight | Foreign Institutional Investors | Mutual Funds

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