FII holding in Nifty companies at record

Aggregate holding in 50-share Nifty companies touching a high of 18.12% during the September quarter

Foreign institutional investors (FIIs) have further strengthened their position in the Indian equity market, with their aggregate holding in 50-share Nifty companies touching a high of 18.12 per cent during the September quarter, against 17.86 per cent in June and 18.08 per cent in the March quarter.

Foreign investors held 16.54 per cent of the total equity in these companies as of September-end 2012, according to quarterly shareholding information filed by these companies.

Domestic institutional investors’ shareholding in Nifty companies, at 12.04 per cent, is at a fifteen-quarter low. The average promoter holding in these declined to 52.9 per cent from 53.1 per cent in previous quarter, data showed.

Since September, foreign investors have pumped in Rs 17,896 crore ($2.90 billion) in the equity market. Foreign investment in the stock market this year was Rs 91,123 crore ($16.56 billion), according to Securities and Exchange Board of India. During the September quarter, FIIs increased their holdings in 30 companies in the Nifty pack.

Their holdings in Hindustan Unilever and Sesa Sterlite declined, owing to an open offer and scheme of amalgamation.

The stake of FIIs, the primary driver of Indian stocks, in 10 of the 50 Nifty companies touched new highs, while their stake in 12 other companies was near record highs, data on the shareholding pattern showed.

Among individual stocks, FII stakes in Axis Bank, Lupin, Mahindra and Mahindra, HCL Technologies, Tata Power Company, Power Grid Corporation, NTPC, Wipro, Sun Pharma and NMDC touched record highs in the September quarter.

However, FII holdings in IDFC, IndusInd Bank, Maruti Suzuki India, ICICI Bank, Hindalco Industries and State Bank of India declined---one to three per cent---during the quarter. At 19.1 per cent, FIIs’ share in top BSE-500 companies stood unchanged during the September quarter, compared to the previous one.

Owing to the weak rupee, the FII portfolios changed for exporters---those in the energy, automobile, information technology services and healthcare segments. They net sold financials and real estate stocks during the quarter. Within this segment, they bought MindTree, Hexaware Technologies, Religare Enterprises, Just Dial and Apollo Tyres and net sold Wockhardt, Unitech, Dish TV and Ashok Leyland.