FIIs offloaded shares worth Rs 3,000 cr in 2011

Press Trust of India / New Delhi June 28, 2011, 13:13 IST

Foreign institutional investors have offloaded shares worth nearly Rs 3,000 crore in 23 Indian companies, such as mortgage lender HDFC and Bombay Dyeing, among others, so far in 2011.

According to an analysis, ten foreign fund houses, such as Citigroup, Morgan Stanley, Merrill Lynch, Deutsche Securities and JP Morgan, sold shares of Indian companies worth Rs 2,939 crore through open market transactions on the Bombay Stock Exchange in 2011.

At the same time, eight overseas investors bought shares of 10 other firms, including Cairn India, for Rs 1,811 crore during the same period.

Analysts said this is just a normal stock market purchase and sale done by an institutional investor and is more of basket selling by some big client.

"It seems that one of the big clients has offloaded its holdings in the open market, while another one has bought it. It may also be that the client has changed its fund house," Religare Securities executive vice president and head (retail research) Rajesh Jain said.

Overseas clients invest in shares of Indian companies through participatory notes issued by fund houses.

Morgan Stanley Mauritius Company sold its holdings to the tune of Rs 1,368 crore in 12 firms, including Bajaj Finserv, Bombay Dyeing, VIP Industries, United Breweries Holdings, Garware Wall, Prime Focus and Subex, among others.

Similarly, Citigroup sold shares worth Rs 1,249 crore in five companies, namely HDFC, Mahindra & Mahindra Financial Services, Zenith Computers, JBF Industries and Marg, through the bulk deal window.

Further, Deutsche Securities Mauritius sold 2.5 lakh shares of Eicher Motors for Rs 25.50 crore.

In addition, UBS Securities sold its stake in Consolidated Construction, JPMorgan Special Situations (Mauritius) offloaded its holding in Cable Corp and HSBC Global Investment Funds sold its shares in NCC.

What more, T Rowe Price International Funds, Master Trust BK of Japan, Merrill Lynch Capital Markets Espana and BankAmerica International Financial Corp offloaded stake in Allied Digital, Indoco Remedies, Marg and Zuari Industries, respectively.

The biggest share purchase deal was done in Cairn India's counter as Broad Peak Mauritius and Merrill Lynch Capital Markets Espana together bought shares valued at Rs 1,706 crore.

Besides, DSP BlackRock Mutual Fund, ITF Mauritius, Credit Suisse (Singapore), Goldman Sachs Investments Mauritius, Deutsche Securities Mauritius and Citigroup Global Market Mauritius took stakes in Indian firms during 2011.


THANKS TO BS


The FII influence is indispensable as the gyrations of Market movement are collateral to their investment.

The policy decisions unfolding……….

The Central Govt is doing its part on the policy decisions after the May elections. There is a period of more than 6 months where the activity was stalled for want to people mandate as acid test to the rule at the centre.

Now the Govt working economic reforms on phased manner. The petrol hike to curtain the burden is step forward in such initiatives, now the gates were open. A few days back, on Friday evening, announced the increase of diesel price, LPG and Kerosene prices by Rs. 3, 50, 2 respectively.

The RBI has taken a stringent call to curtain the spiraling inflation by rate hike with out effecting the money circulation. Now RBI has left with little choice but to accept the high growth high inflation concept, especially dedicated to emerging countries like India. The current news on stands is allowing FIIs to invest in MF with an upper limit of $10 billion. The green signal in proprietary trading for FDI, is another good sign we are talking about.

The culmination of the effects made buoyancy effect in the stock-markets as the prices are ticking green to touch new highs. The much wanted policy decisions were published to negate pessimism note floating in the markets. The clear sign of relief is good for bulls until and unless the global slide make a catastrophe. The Nifty is good as mentioned in my previous posting…. THE HOPE GENERATED>>>??????  The bulls took charge of the last two days of the week. The FO closing gave good support to push the Nifty to higher levels. The Nifty levels above 5450 level is neutral but the challenge lies a head above 5520 level. The previous support 5460 which has become a platform for bulls now became a line of battle……..