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Our Bureau

Kolkata, Nov. 11 Foreign institutional investors are continuing their shopping spree since the beginning of the new Indian trading year on October 16, the Diwali day.

They were net buyers for Rs 5,220.2 crore since Diwali. According to bulk deal details available with the exchanges, Citigroup was the most active FII during this period.

But FIIs have hardly changed their holdings in heavyweights in the Sensex and the Nifty. The BSE Sensex was, however, down by 2 per cent during this period.

A quick check on the FII transaction data suggests that except for two transactions involving L&T, a Sensex and Nifty component, and Suzlon, a Nifty stock, all other transactions were in mid- and small-cap sector . The buying or selling generally suggested portfolio churning between two FIIs as also between an FII and a local investor.

Citigroup Global Markets Mauritius Private Ltd on November 6 sold 42.10 lakh shares of L&T, a large part of which was bought by HSBC at Rs 1,566/share. HSBC Global Investment Funds (A/C HSBC Global Investment Funds Mauritius Ltd) bought around 40.14 lakh shares of L&T on the same day.

Citigroup Global Markets Mauritius also sold 1.01 crore Suzlon shares on October 29 at Rs 71.19 a share. Citigroup recently rated Suzlon as “high risk”. Citigroup also sold 3.05 lakh shares of Sujana Towers on October 27 at Rs 58.5 apiece. Citigroup was seller (18.50 lakh shares at Rs 170 each) in Phoenix Mill too on November 9. On October 20 Citigroup bought 2.63 lakh shares of DS Kulkarni at Rs 78.94 each.

According to Citi Wealth Advisors’ recent report, “Earnings continue to remain flat, largely in-line with expectations thus far, for both the narrow and the broad market, with aggregate earnings boosted by one-offs from downstream oil companies. Sales growth is the kicker; however, Sensex companies (ex-oil) saw their top lines rise 5.6 per cent, the highest in four quarters, and the broad market wasn’t far behind. Excepting the cyclicals (metals, real estate), earnings figures look reasonable in growth trajectory.”

There are examples of FIIs buying or selling from local funds or institutions.. On November 9, Merrill Lynch Capital Markets Espana SA SV bought 4.90 lakh shares of Bayer Crop from Birla Sunlife Insurance at Rs 423 a share.

There were three transactions between Copthall and JF Eastern Smaller Companies Fund involving cement companies. Copthall Mauritius Investment Ltd purchased 18.62 lakh shares of Prism Cement from JF Eastern on November 6. Copthall bought 6.30 lakh shares of OCL India on November 6 from JF Eastern. Copthall also bought 4.71 lakh shares of JK Lakshmi on the same day.

Going by the bloc and bulk deals, there were 38 buy deals by FIIs against 52 sell deals during the period.

More Stories on : Foreign Institutional Investors | Stock Markets

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