FIIs up stake in 8 Sensex stocks

Written by Pradip Kumar Dey | Mumbai, Oct 22 | Updated: Oct 24 2008, 05:07am hrs
Even as emerging markets are witnessing a massive capital outflow in the wake of the global credit crisis, foreign institutional investors (FIIs) have increased their stake in as many as eight companies in the 30-share Sensex. The major companies, in which the FII share went up from June 30 to September 30 this calendar year, include heavyweights such as HDFC, Hindalco Industries, Maruti Suzuki, BHEL and Larsen & Toubro.

Analysts said the strong fundamentals of these companies continue to attract FII interest. HDFCs net profit increased 14% to Rs 534 crore and its total income increased 13% in the quarter.

The top five companies, according to the share of FII stake as of September 30, are HDFC, Satyam Computer, ICICI Bank, Infosys Technologies and HDFC Bank.

Among these, the highest increase in FII share was witnessed by HDFC. Healthy position in CASA (current and savings accounts) is helping HDFC Bank lure foreign portfolio investment even as the world markets are reeling under a credit crisis.

In 21 other Sensex constituents, FIIs are bringing down their stakes. The stock markets in India has been declining amid the credit crisis that gripped countries across the world. Surging inflation rate in India also took a toll on the share prices. The FII stake decreased the most in Ranbaxy Labs followed by Jaiprakash Associates, ICICI Bank and Tata Steel. Data on the shareholding pattern of ITC is not available. Trends in commodity prices also are not favourable. Volatility with downward bias continues to prevail in the market, said an analyst.

As of September 30, FIIs have significantly brought down their stakes in to telecom majors Bharti Airtel (from 23.63% to 22.60%) and Reliance Communications (from 9.98% to 9.42%).

In IT companies also the FII stake has gone down. FIIs decreased their stake in Infosys Technologies to 32.54% from 33.56%. In Satyam Computer, the FIIs decreased their stake from 47.65% to 46.86% during the June-September period.

In Sensex heavyweight Reliance Industries, the FII stake came down from 17.11% to 16.97%. The average share of FIIs in all Sensex companies together has decreased from 19.14% to 18.31% during the review period.