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08 March 2012

Shareholding Monitor March 2012 ::ICICI Securities (PDF link)

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http://content.icicidirect.com/mailimages/ICICIdirect_%20ShareholdingMonitor_Q4CY11.pdf



Promoters, public, FIIs and MFs are the major equity stakeholders in a listed
corporate entity. Of the stakeholders, FIIs have been major investors in Indian
corporates as is evident from the accompanying chart (Exhibit 1) with their
holding in BSE 500 companies moving  up from 11% in December 2009 to
12.2% in December 2011. The optimism  displayed by FIIs in the Indian
corporate growth story arises from the fact that the Indian economy remained
relatively insulated from the global economic meltdown mostly on account of
the strong domestic consumption, thrust on infrastructure development and a
strong banking system. The resilience of the Indian economy reaffirmed the
faith of FII investors who have increased their holding in Indian companies.
After pulling out | 53,052 crore in CY08 during the global economic
meltdown, FIIs have invested | 85,368 crore in CY09 and | 1,34,294 crore in
CY10.  In  CY11,  FII  investments  in  equity  have  been  volatile with  a  cumulative
net outflow of | 3358 crore. Q1CY11 was characterised by a pre-Budget selloff with FIIs being net sellers to the tune of | 3100 crore while Q2CY11 had
seen positive inflows to the tune of | 5171 crore and Q3CY11 has seen an
outflow of | 2961 crore. Lastly, Q4CY11 has registered a net outflow of | 2450
crore. FII holding has declined by 4.1% in Q4CY11 with the BSE 500 index
correcting by 9.5% to 5779 level in December 2011 from 6386 levels in
September 2011.

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