FII stake in 10 Sensex firms up in Jan-Mar

Written by Pradip Kumar Dey | Mumbai | Updated: Apr 24 2009, 04:17am hrs
The share of FIIs in a total of 10 Sensex companies saw an increase on March 31, 2009, from the level of December 31, 2008. Some of these companies include Maruti Suzuki,Grasim Inds, Jaiprakash Associates, Infosys and HDFC.

The net profit of Infosys increased by 32.7% to Rs 1,569 crore during January-March 2009 from the level of Rs 1,182 crore during January-March 2008. Sales of the company also increased by 24% during the above period.

But FIIs are decreasing their stake in most Sensex companies. Among the 30 Sensex firms, 25 companies data are available as on March 31, 2009, so far. Out of 25 stocks, 15 companies saw a decrease in FII stake. Highest fall in FII stake was seen in the case of SBI followed by Tata Motors, Larsen & Toubro and HDFC Bank.

Harish Menon, executive director, H-Zone Capital, said, After a correction in equities that we have seen over the last 15 months, a lot of Indian large cap equity shares do offer significant value to investors at current levels. Looking at the trend of industrial production, one could argue that the Indian economic activity has seen its worst and could be in a revival stage. Resultantly, the interest of foreign investors has improved over the last few months. Moreover, depreciated levels of rupee and overall improvement in global investors sentiment has accentuated the interest.

The latest shareholding pattern, as of end March 31, 2009, clearly shows that FIIs have significantly decreased their stakes over the December 31, 2008 quarter in telecomm majors Bharti Airtel and Reliance Communication. The FIIs stake in private bank major like ICICI Bank also decreased to 35.47% on March 31, 2009 from the level of 36.60% on Dec, 31, 2008. And in the case of HDFC Bank, the FIIs stake decreased from 27.44% to 25.70% during the above period.