praveen
22-11-2007, 07:09 AM
India Inc is firming its grip on the stock market with promoter holdings rising by four per cent in the country's 500 biggest listed entities, even as all other investor classes are paring exposure to the bourses.
According to a study by the brokerage division of global financial services major Citigroup, promoter holding went up to 58 per cent in the BSE-500 companies in the second quarter this fiscal from 54 per cent in the previous three-month period.
In contrast, FIIs, mutual funds, banks, insurance companies and retail investors cut down their holdings.
"For the latest quarter, promoter ownership has gone up, while ownership of all other categories has come down. This has been mainly due to stronger performance of high promoter stake companies, rather than a major sell down by any category of investors, " Mr Ratnesh Kumar, India Research Head, Citigroup said.
According to Citigroup research analysis of the ownership patterns, the BSE-500 company saw a fall in FII holdings to 20.2 per cent in July-September from 22 per cent in the previous quarter.
Domestic mutual funds also reduced their holding to 3.7 per cent in the period under review from 4.3 per cent, while insurance firms and other institutions reduced their stake to five per cent from 5.5 per cent.
The companies also saw retail investors cutting down their stake to 9.2 per cent from the 10 per cent.
Among the 30 blue-chip firms comprising the benchmark Sensex, FII holdings amount to about 26 per cent, while promoters own about 49.3 per cent stake in the companies.
Financial institutions and retail investors together hold the remaining stake
According to a study by the brokerage division of global financial services major Citigroup, promoter holding went up to 58 per cent in the BSE-500 companies in the second quarter this fiscal from 54 per cent in the previous three-month period.
In contrast, FIIs, mutual funds, banks, insurance companies and retail investors cut down their holdings.
"For the latest quarter, promoter ownership has gone up, while ownership of all other categories has come down. This has been mainly due to stronger performance of high promoter stake companies, rather than a major sell down by any category of investors, " Mr Ratnesh Kumar, India Research Head, Citigroup said.
According to Citigroup research analysis of the ownership patterns, the BSE-500 company saw a fall in FII holdings to 20.2 per cent in July-September from 22 per cent in the previous quarter.
Domestic mutual funds also reduced their holding to 3.7 per cent in the period under review from 4.3 per cent, while insurance firms and other institutions reduced their stake to five per cent from 5.5 per cent.
The companies also saw retail investors cutting down their stake to 9.2 per cent from the 10 per cent.
Among the 30 blue-chip firms comprising the benchmark Sensex, FII holdings amount to about 26 per cent, while promoters own about 49.3 per cent stake in the companies.
Financial institutions and retail investors together hold the remaining stake