FIIs pare stakes in Sensex cos

Written by Pradip Kumar Dey | Mumbai, Jul 28 | Updated: Jul 29 2007, 06:21am hrs
Foreign Institutional Investors (FII) are decreasing their stake in most of the Sensex companies. In fact, of thirty, 20 companies have witnessed a decrease in FII stake in the quarter between March and June 2007.

If figures of June 30 and March 31 are compared, significant dip, in terms of FII stake, was registered by ACC (20.12% to 16.04%), Ambuja Cement (31.99% to 27.65%) and HDFC Bank (32.37% to 26.53%). The share of FIIs in Reliance Energy (20.30% to 21.26%), Maruti Udyog (12.59% to 12.85%), Wipro (5.14% to 5.26%) and Tata Steel (17.41% to 22.64%), however, increased during the period.

Anantpadmanabhan Sarma, executive VP of IDBI Capital said, FII behaviour in the Sensex stocks cannot be generalised. They act in a company-specific and sector-specific manner.

The latest shareholding pattern, as of June-end, clearly shows FIIs have significantly decreased their stakes over the March 31 quarter in Pharma majors such as Cipla (16.81% to 15.68%) and Dr Reddys Laboratory (27.49% to 26.64%).

The FIIs stake in IT major Infosys has also decreased to 31.82% on June 30, from the level of 32.55% on March 31.