FIIs cut exposure to Tata, Ambani groups in FY12

Overseas investors have cut their exposure to the country's three leading business groups— Tatas and the conglomerates led by Mukesh and Anil Ambani— with net sale of shares worth an estimated Rs 2,500 crore in their companies since the beginning of this fiscal.

An analysis of changes in shareholding patterns of the companies belonging to these groups, as filed with the Bombay Stock Exchange, shows that foreign institutional investors (FIIs) are net sellers in shares of all the three groups since April 2011 or start of this fiscal.

On the other hand, the domestic institutional investors (comprising of mutual funds, insurance companies and banks among others) were net buyers of stocks belonging to the Tatas and Mukesh Ambani-led Reliance Industries group. However, they were net sellers of shares from Anil Ambani-Reliance Group.

The FII holding in both the listed companies of Mukesh Ambani-led group, Reliance Industries (RIL) and Reliance Industrial Infrastructure Ltd (RIIL), fell marginally between April and September with sale of shares worth over Rs 1,100 crore at the current market prices.

On the other hand, FIIs lowered their stakes marginally in five out of six Anil Ambani-led Reliance Group companies with net sale of shares worth over Rs 300 crore at the current market values. The FII holding rose in Reliance Broadcast, but fell in RCOM, Reliance Power, Reliance Infra, Reliance Cap and Reliance MediaWorks.

In the Tata group, FIIs are estimated to have sold shares worth a net amount of about Rs 1,000 crore since the beginning of this fiscal.

FIIs lowered their holdings in companies like Tata Chemicals, Tata Motors and Tata Steel, while their raised their exposure to Tata Power, TCS, Titan, Tata Global Beverages, Trent and Rallis, among others.

The domestic institutional investors raised their stakes in Reliance Industries, as also in Tata group firms like Tata Chemicals, Tata Motors and Tata Steel.

However, the domestic investors cut their holdings in Tata group companies like Rallis, Tata Global Beverages and Tata Investment Corp.

The other class of investors, which include small retail investors and HNIs (high networth individuals), have been net sellers in Tata group stocks, but have made net purchase of shares from the two Ambani groups since the beginning of this fiscal.