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Market Ownership Trends
Sep ’10: Sectoral positioning largely sustained
FIIs maintain stronghold. Institutional ownership stood at
27.2% (FIIs: 18.0%; Insurance: 5.3%; Mutual Funds-MFs: 3.8%)
in Sep ’10 as against 25.9% in Jun ’10 and 25.7% in Sep ’09. FII
ownership has increased 145bps while DIIs have seen a marginal
increase of 10bps since Sep ’09.
FIIs increase OW position in Financials. FIIs have increased
Overweight (OW) position in Financials by 118bps over the past
quarter, to 845bps at present. Further, FIIs hold OW stance of
313bps on IT Services. However, the sector has seen a 91-bps
decrease in FII ownership over the past quarter. On the other
hand, Energy, Materials, Industrials, Staples and Utilities remain
the major Underweight (UW) sectors.
Little change in domestic institutions’ sector positioning.
There was no meaningful change in the sectoral positioning of
MFs and Insurance in the Sep ’10 quarter. Both are OW on
Staples and Utilities; and UW on Energy and IT Services. MFs and
Insurance have a contrary view and positioning on Discretionary,
Financials, Healthcare, Industrials and Materials.
Key takeaways. FIIs’ ownership in the Free Float is 40% for Sep
’10 compared with 37.7% in Jun ’10 and 38.2% in Sep ’09. The
strong divergence in the FII and DII ownership pattern continued
in Sep ’10. The only major sector ownership during the quarter
has been the further increase in FIIs ownership in Financials.
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