Life Insurance Corporation
of India sold off a reasonably high level of its stakes in a few large
market-cap stocks during the second quarter (July to September) of this
financial year. During the same period, Europacific Growth Fund — a US-based
foreign institutional investor registered with capital market regulator Sebi
(Securities and Exchange Board of India) — increased stakes in many large-cap
companies. This was the only institutional investor that raised stakes as far
as the number of stocks is concerned.
This was bought out in a FCRB analysis of changes in non-promoter and public shareholding between June 30 and September 30 in the 50 companies belonging to S&P CNX Nifty, where shareholders held one per cent or more stake in a company.
Since Nifty companies are among the largest in the listed universe in terms of market capitalisation, a greater than one per cent stakeholding involves a high value and this is usually possible in case of large institutional investors only.
Although Life Insurance Corporation reduced its greater-than-one-per cent stake in only 10 Nifty stocks, the quantum was high, and four of them saw largest decline in equity holdings among all public shareholding in Nifty stocks (see table). Europacific Growth Fund, on the other hand, raised its holdings in seven of 10 Nifty stocks it was invested in.
While Life Insurance Corporation’s largest stake reductions included that in two banks, State Bank of India and HDFC Bank, it maintained its stake in Kotak Mahindra Bank and increased it marginally in ICICI Bank. The other large domestic institutional investor, ICICI Prudential Life Insurance, too sold stakes in 12 of 20 Nifty stocks where it had over one-per-cent stakes during the second quarter.
Among large foriegn institutional investors, Aberdeen Asset Managers did not fiddle much with its large holdings in Nifty stocks. Oppenheimer Developing Markets Fund cut its stake by 0.53 per cent in Hindustan Unilever from 2.30 per cent to 1.77 per cent. An overseas investor, New World Fund, which did not have any large stake in Nifty stocks in the first quarter had 1.11 per cent and 1.03 per cent stakes in Ambuja Cements and Power Grid Corporation at the end of the second quarter.
Among Nifty stocks, Tata Power, Tata Steel, Maruti Suzuki, HDFC Bank and Ambuja Cements saw biggest increase in stakes of shareholders, who held more than one per cent stake.
This was bought out in a FCRB analysis of changes in non-promoter and public shareholding between June 30 and September 30 in the 50 companies belonging to S&P CNX Nifty, where shareholders held one per cent or more stake in a company.
Since Nifty companies are among the largest in the listed universe in terms of market capitalisation, a greater than one per cent stakeholding involves a high value and this is usually possible in case of large institutional investors only.
Although Life Insurance Corporation reduced its greater-than-one-per cent stake in only 10 Nifty stocks, the quantum was high, and four of them saw largest decline in equity holdings among all public shareholding in Nifty stocks (see table). Europacific Growth Fund, on the other hand, raised its holdings in seven of 10 Nifty stocks it was invested in.
While Life Insurance Corporation’s largest stake reductions included that in two banks, State Bank of India and HDFC Bank, it maintained its stake in Kotak Mahindra Bank and increased it marginally in ICICI Bank. The other large domestic institutional investor, ICICI Prudential Life Insurance, too sold stakes in 12 of 20 Nifty stocks where it had over one-per-cent stakes during the second quarter.
Among large foriegn institutional investors, Aberdeen Asset Managers did not fiddle much with its large holdings in Nifty stocks. Oppenheimer Developing Markets Fund cut its stake by 0.53 per cent in Hindustan Unilever from 2.30 per cent to 1.77 per cent. An overseas investor, New World Fund, which did not have any large stake in Nifty stocks in the first quarter had 1.11 per cent and 1.03 per cent stakes in Ambuja Cements and Power Grid Corporation at the end of the second quarter.
Among Nifty stocks, Tata Power, Tata Steel, Maruti Suzuki, HDFC Bank and Ambuja Cements saw biggest increase in stakes of shareholders, who held more than one per cent stake.
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