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Domestic institutions and small investors have reduced their stake in listed companies last quarter. According to an analysis, they cut stake in more companies than they increased. So far, 247 companies of BSE-500 index have disclosed their September quarter shareholding pattern.
On the other hand, foreign institutions have churned their position aggressively by equally buying and selling stake.
On a quarter-on-quarter basis, 130 companies saw mutual funds paring their stake and in 144 companies small investors reduced their holding. Only 87 companies saw an increase in mutual funds’ holding and 97 companies witnessed a stake-hike from small investors.
On a year-on-year basis, mutual funds cut their holding in about 126 companies and small investors reduced their holding in about 150 companies, according to the latest shareholding data available with the stock exchanges. data disclosures ending September 2012, from the bourses. Domestic institutions increased their holding in only 87 companies and small investors increased their stake in 94 companies.
Recently, Akshay Gupta, CEO and MD of Peerless Funds Management Company told Business Line , “Mutual fund redemptions as a category are more driven by the client’s decision to pull out. Basically, redemption is happening big-time; this we see even in a small fund such as ours.”
Top companies which saw mutual fund paring stake were Usha Martin, BHEL and HT Media Companies where mutual funds increased their stake were Sadbhav Engineering, Persistent Systems and Titagarh Wagons.
Promoters too pare
FIIs have reduced stake in Sintex Industries, JSW Holdings and ABG Shipyard, and increased their holdings in Cairn India, HDFC and SKS Microfinance.
“We have been seeing a trend of DIIs selling, when FIIs are buying. Small or retail investors are waiting for the markets to improve before they can buy,” said Mr Jagannadham Thunuguntla, Strategist & Head of Research, SMC Global Securities.
Promoters also pared their holding in more companies than buying.
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