Fii Holding At 24% In 16 Companies

Key technology and software stocks have touched their 24 per cent foreign institutional investors (FII) investment ceiling limit. According to the latest figures available with the Reserve Bank of India, as on April 25, 1997, 16 stocks have touched their 24 per cent FII ceiling limit. Six other stocks have touched their 20 per cent limit.

The HDFC stock, which posted strong results this week, would continue to command strong FII presence, marketmen said. This can be viewed from the fact that the HDFC board has cleared a proposal to raise the FII investment ceiling limit to 30 per cent following recent budgetary announcements. While most stocks have witnessed trading interest largely through FIIs, some like Salora International, Maral Overseas, Jaiparabolic, Nagarjuna Constructions, Patheja Forging and Shivalik Projects have been favoured by FIIs only in the earlier years.

 

The NIIT stock has reached the overall ceiling of 24 per cent of paid-up equity capital permitted to be held by all registered FIIs.

The RBI list shows that the SBI stock, which has witnessed hectic trading activity in recent weeks, has touched its 20 per cent limit. The RBI official statement, however, says that in the case of SBI, though only 20 per cent limit has been reached, no further purchases will be allowed in view of the condition stipulated by the Central Government while approving its GDR. According to marketmen, not many of these stocks have been actively traded by local operators. A section of the market is of the view that barring Infosys (which is viewed as fundamentally strong), the other stocks in the 24 per cent band are traded sporadically.

Brokers point out the presence of Morgan Stanley, Jardine Fleming and Capital International as the key FIIs which hold a strong presence in some of these stocks.

In the coming weeks, stocks like BHEL, VSNL, MTNL, Container Corporation, Bharat Earth Movers and Mico could move into the limelight. These are the stocks which have been favoured by FIIs in recent weeks. Brokers say that a leading global investment bank holds a large chunk of some of these stocks, and has indulged in churning its portfolio to boost the NAV for its schemes.

FII INVESTMENTS AT 20%

WS Industries, MSL Industries, PVD Plast Mould, Essel Packaging, State Bank of India*, Carrier Aircon

*Though 20 per cent limit has been reached, no further purchases will be allowed in view of the condition stipulated while approving its GDR.

Shivalik Projects Ltd

Salora International

Jaiparabolic Springs

ModiLuft, Zee Telefilms

Infosys Technologies

Unitech Ltd

Mastek Ltd

HDFC

Satyam Computer Services

Polyplex Corp

Nagarjuna Constructions

NIIT Ltd

Patheja Forgings Auto

Max India