Vishal Sikka effect FII holding in Infosys at all-time high

Written by fe Bureau | Mumbai | Updated: Oct 17 2014, 16:37pm hrs
Vishal SikkaFII holdings in Infosys is at an all-time high of 42.67% in the September quarter.
The appointment of Vishal Sikka as CEO & MD of Infosys seems to have enthused foreign institutional investors (FIIs), who have taken their holdings in the company to an all-time high of 42.67% in the September quarter.

Sikka was handed over the reins of the Bangalore-based company on August 1.

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The scrip has rallied more than 14% since then. YTD, it has gained 10.11%. While most Sensex companies are yet to report their latest shareholding pattern, FII holdings have rose to more than a four-year high in Tata Steel (18.79%) and Bharti Airtel (17.91%).

In the June quarter, FII ownership in the markets was at an all-time high. As of June 2014, FIIs collectively held approximately 22.5% of the market and approximately 46% of the free float. India OW was at an all-time high for GEM funds, BofA ML said in a report. In the September quarter, FIIs shopped for more than $3 billion worth of equities. YTD, FIIs have purchased more than $13 billion worth of equities. The BSE benchmark Sensex has gained 4.79% in the September quarter.

Foreign brokerages believe that capital inflows could slow down if market participants don't see action at the ground level. If inaction, complacency or even just administrative roadblocks set in, strong capital inflows that have followed the India reform story just as they did for the rest of the Reform Club could then slow down, leading to the kind of volatility we have seen in the markets in Japan, China and Mexico. However, India may just turn out to be more fortunate and, hence, more resilient in implementing reforms and raising growth than its fellow club members, Morgan Stanley said in a report.

FII inflows slowed down to a seven-month low of $1 billion in September.