Foreign institutional investors (FIIs) were not just withdrawing money from India during the July-September quarter. Amid highly volatile global markets, FII stakes in Indian companies moved both ways.
Out of the 500 companies that comprise the BSE 500 index, 272 saw a fall in their FII holding, with FII stakes in 50 companies falling by more than 20 per cent. The major losers include Dabur Pharma, IL&FS Investmart, Ranbaxy, and Motilal Oswal Financial Services.
However, 209 companies in the BSE 500 — about two out of five companies — saw FIIs increasing their stakes. Among these, 30 companies, including IBN18 Broadcast, Vijaya Bank, Titagarh Wagons, Mindtree and East India Hotels, witnessed a rise of more than 20 per cent in their FII holding.
Predictably, most companies that witnessed major FII outflows saw significant erosion in their share prices between July 1 and September 30, with Astra Microwave a large exception.
Conversely, companies that saw FIIs increase their stakes, mostly saw a rise in their share prices. MindTree and Carborundum Universal were the two big trend-breakers.
The BSE 500 index represents 93 per cent of the total market cap of the Indian equity market and has a free float (tradeable shares) of Rs 12,77,193 crore as on November 4, 2008.
While FII holding information is available up to September 2008, it would be worth taking a note of their holding after October. This is because the net FII outflow from the Indian equity market stood at Rs 15,347 crore during October against Rs 11,329 crore in the three months of July, August and September.