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FII stakes in BSE-500 firms at all-time high, DII stakes touch 13-quarter low

Monday, 13 January 2014 - 10:36am IST | Place: Mumbai | Agency: DNA

Foreign institutional investors (FIIs) continued to increase their stakes in Indian companies for the eighth consecutive quarter, taking their holding in BSE-500 companies to new all-time highs as at end of December quarter even as domestic institutional investor (DIIs) holdings fell to at least 13 quarter low.

Going by the latest December quarter-end shareholding pattern for 210 companies belonging to BSE-500 index, their average stake in these companies shot up by 58 basis points to 15.65% from 15.07% as at end of September quarter.

That’s not surprising, given that they had pumped in over Rs 40,700 crore into Indian equities in the last three months of calendar year.

During the December quarter, FIIs were aggressive buyers as they raised their stake in 131 out of 210 companies, while cutting their stakes in 70 companies. They were big buyers in stocks related to capital goods, midcap IT, midcap pharma, telecom and media sectors. 

The measures taken by the RBI to stem rupee slide, cheap valuations of beaten down cyclical stocks along with hopes of Bharatiya Janta Party’s win leading to revival in Indian economy played a part in strong inflows during the quarter. 

The stocks where they raised stakes the most included Ceat (stake up by 8.19% quarter on quarter), Tech Mahindra (7.83%), Jubilant Life (5.16%), United Phosphorus Ltd (5.16%), HDIL (4.60%) among others.

Domestic institutions, on the other hand, continued to reduce their stakes in BSE-500 companies for the sixth consecutive quarter to take their average holding at 13-quarter low.

DIIs, which were huge net sellers of equities worth Rs 29,100 crore in the December quarter, pared their stake in 124 companies while increasing their shareholding in 72 BSE-500 companies. As a result, their average holding reduced from 9.11% as at September end to 8.78% at the end of December quarter.

DIIs were big sellers of midcap pharma, banks and IT stocks and autos while they raised stakes in beaten down midcap infra stocks and largecap banks.

Among other class of investors, average stake of promoters in 210 BSE-500 companies remained unchanged at 55.74%, while the retail investors cut their average stakes in BSE-500 companies from 12.71% to 12.46% on quarter-on-quarter basis.

Staying bullish
During the December quarter, FIIs were aggressive buyers as they raised their stake in 131 out of 210 companies, while cutting their stakes in 70 companies.

The stocks where they raised stakes the most included Ceat (stake up by 8.19% quarter on quarter), Tech Mahindra (7.83%), Jubilant Life (5.16%), United Phosphorus Ltd (5.16%), HDIL (4.60%) among others.


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