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Stock watch: Where have FIIs bet their money?
If one compares the third quarter with the second quarter of FY08, the stocks in which FIIs have upped their stake are Jai Corporation, Peninsula Land, Supreme Industries and Sintex, a CNBC-TV18 analyst said. Consequently, these stocks have gone up.
If one compares the third quarter with the second quarter of FY08, the stocks in which FIIs have upped their stake are Jai Corporation , Peninsula Land, Supreme Industries and Sintex . Consequently, the stock prices have gone up. However, there are some stocks where FIIs have exited, which includes GVK Power, Phoenix Mills, Indiabulls Financials and BSEL Infrastructure.
September versus December 2007
Jai Corporation has gone up from 0.5% in September to 11.5% in December 2007. So, have stocks like Supreme Industries and Peninsula Land . These are the three stocks where FIIs have increased their stake.
Jai Corp has placed 11% of the 11.2% increase in FII holding to a single FII for about USD 500 million. Peninsula Land has placed 10% of their stake to four FIIs in a qualified institutional placement. In Supreme Industries, about 2.2% of 2.4% increase has been placed to a single FII.
Sintex has gone up from 19.1% in September 2007 to 39.4% in December 2007. Of this, 5% has been taken by HSBC. But the remaining 15% was taken by other FII players, primarily through the secondary market.
So, if it exchanges hands from one party to another and only one party has increased stake, then it doesn't provide a strong picture. But if it is through a secondary transaction, that would give a strong structure. For example, in West Coast Paper Mills there are no FIIs with stakes over 1%. But still their stake has gone up from 0.6% in the period under review.
Traditionally, an increase in FII data implied a good stock and a decrease in FII data indicated a not so good stock. But of late, there has been a lot of QIP buying, as seen above.
However, some of these companies have given their share to domestic institutions. There has been a complete exit in case of Tamil Nadu Petro, which is very bad for the stock. The size of FII was 1.2%, which has gone to zero in Q3.
By Shravan Shreenivasula/CNBC-TV18
