Foreign institutional investors have been quick to respond to the recent reform initiatives announced by the government. They have raise their holding in three out of the four companies that form the benchmark Sensex at the Bombay Stock Exchange.
Of the 29 companies that announced their shareholding pattern as on Friday for the quarter ended September 2012,FIIs have raised their stake in 22 companies while seven of them have witnessed a decline in their holding over June 2012.
TCS is the only company which has not announced its holding till Friday. While HDFC,Dr Reddys Lab,Hero Motocorp,Bharti Airtel,Wipro,Coal India and NTPC witnessed a decline in their FII holding,rest all have witnessed an increase.
Cipla witnessed the highest increase in percentage point terms as the FII holding during the quarter rose from 18.1 per cent to 20.78. L&T,M&M,Infosys and ICICI Bank also witnessed a noticeable hike in the FII holding.
The interest of FIIs is,however,not limited to the Sensex companies as the trend is similar in the BSE 100 list of companies as only 24 out of the 91 companies have witnessed a dip in FII holding while 67 companies have witnessed a hike in their holding.
Cairn India,Axis Bank and Yes Bank have been the biggest gainers in terms of increase in FII holding in percentage point terms. The holding in Cairn India almost doubled from 8.5 per cent in June 2012 to 16.2 per cent in September 2012 while that in Axis Bank has risen from 27.27 per cent to 32.78 per cent.
In terms of losers Indiabulls Financial Services witnessed a decline in FII holding during the quarter from 37.94 per cent in June 2012 to 33.16 per cent in September 2012. Other major losers were Federal Bank and United Spirits whose holding went down by 3.9 and 3.6 percentage points respectively.
Sensex down 110 pts,Rs at 53.84/USD
The BSE Sensex on Friday fell nearly 110 points on profit taking in power,metal and capital goods shares,snapping the two-day rally,amid weak global cues. The Sensex,which had gained about 215 points in last two days,opened weak and touched a low of 18,611.76 on selling in Reliance Industries,HDFC,HDFC Bank and L&T.
The 50-share National Stock Exchange index Nifty lost 34.45 points,or 0.60 per cent,to close at 5,684.25.
FII outflows and US dollar demand pushed the Indian rupee 1 per cent to 53.84 against the US dollar,further dampening sentiment. ENS