Construction, banking cos top FII buy list
FII have raised their holding in 540 out of top 1,000 cos on the BSE during September-March 2006-07.
By TNN |
MUMBAI: Foreign institutional investors (FII) have raised their holding in 540 companies out of top 1,000 companies on the Bombay Stock Exchange (BSE) during September-March (2006-07) period. They have trimmed their holdings in 360 companies, while the remainder have seen no change in foreign holding. Among the top 500 companies, FIIs have reduced their stake in 178 companies.
There is no clear sectoral trend, companies that have gained favour with foreign investors are mostly from construction and banking. Second-line IT companies too were on the FII buy list during the half year under consideration. That view may have changed following the recent appreciation in the rupee, which is likely to hurt the margins of most IT companies, brokers say. Most pharmaceutical companies saw a decline in FII shareholding.
A Morgan Stanley report says there has been increased FII portfolio churn at both the individual stock and sector levels. “Stock-level churn has increased to an eight-year high on a four-quarter trailing basis,” says the report. “FIIs also expanded their average sector position size to a five-quarter high, led by changes in positions in telecom, financials and consumer discretionary. The concentration of the top holdings declined during the quarter. Among trends that persisted from previous quarters was the selling by domestic households and the FII penchant for stocks down the cap curve,” the report adds.
Among the top hundred stocks that saw major decrease in FII holding are Punj Lloyd (5.51 per cent), Indian Petrochemicals (5.33 per cent), Bharat Forge (4.59 per cent), Tata Steel (4.1 per cent), Tata Motors (3.8 per cent), I-flex (3.6 per cent), Ambuja Cements (3.6 per cent), Infosys (3.6 per cent) and Siemens (3.6 per cent). However, United Spirits (19.6 per cent), Jai Prakash Associates (6.3 per cent), BF Utilities (7.6 per cent), Glenmark (5.2 per cent) and Grasim (3.6 per cent) saw an increase.
FIIs have increased their holding in banking sector stocks like Andhra Bank (19.1 per cent), South Indian Bank (14.5 per cent), Yes Bank (9.5 per cent), Allahabad Bank (5.9 per cent), Bank of Mahrashtra (5.1 per cent), Dena Bank (2.6 per cent), J&K Bank (2.8 per cent), IndusInd (2.2 per cent). However, banks like ICICI Bank, HDFC Bank, Vijaya Bank and Kotak Mahindra saw decline in FII shareholding. Among stocks that witnessed a sizeable increase in FII holdings were Alok Industries (30 per cent), Ganesh Housing and Soma Textiles (27 per cent), Elder Pharma and Pritish Nandy(24 per cent), Amtek (21 per cent), Provogue (20 per cent), Om Metal (19 per cent), UTV Software(18 per cent).
There is no clear sectoral trend, companies that have gained favour with foreign investors are mostly from construction and banking. Second-line IT companies too were on the FII buy list during the half year under consideration. That view may have changed following the recent appreciation in the rupee, which is likely to hurt the margins of most IT companies, brokers say. Most pharmaceutical companies saw a decline in FII shareholding.
A Morgan Stanley report says there has been increased FII portfolio churn at both the individual stock and sector levels. “Stock-level churn has increased to an eight-year high on a four-quarter trailing basis,” says the report. “FIIs also expanded their average sector position size to a five-quarter high, led by changes in positions in telecom, financials and consumer discretionary. The concentration of the top holdings declined during the quarter. Among trends that persisted from previous quarters was the selling by domestic households and the FII penchant for stocks down the cap curve,” the report adds.
Among the top hundred stocks that saw major decrease in FII holding are Punj Lloyd (5.51 per cent), Indian Petrochemicals (5.33 per cent), Bharat Forge (4.59 per cent), Tata Steel (4.1 per cent), Tata Motors (3.8 per cent), I-flex (3.6 per cent), Ambuja Cements (3.6 per cent), Infosys (3.6 per cent) and Siemens (3.6 per cent). However, United Spirits (19.6 per cent), Jai Prakash Associates (6.3 per cent), BF Utilities (7.6 per cent), Glenmark (5.2 per cent) and Grasim (3.6 per cent) saw an increase.
FIIs have increased their holding in banking sector stocks like Andhra Bank (19.1 per cent), South Indian Bank (14.5 per cent), Yes Bank (9.5 per cent), Allahabad Bank (5.9 per cent), Bank of Mahrashtra (5.1 per cent), Dena Bank (2.6 per cent), J&K Bank (2.8 per cent), IndusInd (2.2 per cent). However, banks like ICICI Bank, HDFC Bank, Vijaya Bank and Kotak Mahindra saw decline in FII shareholding. Among stocks that witnessed a sizeable increase in FII holdings were Alok Industries (30 per cent), Ganesh Housing and Soma Textiles (27 per cent), Elder Pharma and Pritish Nandy(24 per cent), Amtek (21 per cent), Provogue (20 per cent), Om Metal (19 per cent), UTV Software(18 per cent).
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