FII ownership in top cos remains unchanged in June quarter

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fe Bureau: Mumbai, Aug 04 2012, 03:51 IST

The FII ownership remained largely unchanged in the top companies while in broader market level their ownership declined to 18.4%. According to various estimates on institutional ownership in the Indian companies, FIIs (Foreign Institutional Investors) increased exposure in defensives like FMCG, pharma and auto players and reduced holdings in energy, engineering and metals space amongst the Nifty companies. However, across institutions, consumer discretionary and utilities were the most purchased sectors while financials were sold the most.

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

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