According to Enam Securities, during the June 2012 quarter, Institutional holdings in the Nifty companies, i.e., the ownership of FIIs and DIIs were largely unchanged at 18.3% and 13.2%, respectively.
As per Morgan Stanley estimates, FII ownership in the top 75 companies fell by about 20 basis points (bps) to 20.2% and to 18.4% in the broader market. It estimates the value of FII holdings as of June 2012 to be $19 billion, down 9% sequentially. On the other hand, financial institutions including banks and insurance and domestic mututal funds (DMFs) increased their stakes in top 75 companies by 21 bps and 11 bps respectively in the period.
Based on the momentum in portfolio holding based on the last eight quarters, Enam identifies that the FII ownership in auto, FMCG and pharma companies of the Nifty constituents is on a rise. Conversely, FII stake in the engineering, infra, metals and oil companies has witnessed a declining trend. In terms of their sector preferences, the FIIs are still underweight in the FMCG, infrastructure, engineering and oil companies while having maintained an overweight on IT, telecom and interest rate sensitives like auto, realty and banking & financial institutions.
While FIIs bought and sold an equal number of stocks (37) in the first quarter of 2012-13, in-terms of the stake change of more than 1%, they sold more stocks (13) than they bought (8). According to Morgan Stanely estimates, United Spirits observed biggest purchase by FIIs in terms of stake change as they increased their ownership in the company by 2.3% quarter-on-quarter.
Axis Bank was their biggest sale in terms of stake change as they reduced their ownership in the company by 5.8%, followed by Suzlon Energy where their stake declined by 4.8%. Amongst the Nifty constituents, Cipla was the biggest purchase, where the FII stake went up by 2% in the June quarter.
Of the top 20 stocks owned by institutions, ITC saw the most buying, and Infosys was the most sold (for the second quarter in a row) in the June quarter.
For the quarter, the portfolio churn remained lower. June was the 12th consecutive quarter when the average sector position is significantly below the long-term average and changed very marginally during the period, Morgan Stanley said.