Taking a bullish stance on shares of Tata group firms, overseas investors have raised their exposure in 12 companies of the salt-to-software conglomerate including giants like TCS, Tata Steel and Tata Motors. The $100-billion Tata group derives over 58 per cent of its revenue from international operations and foreign investors have always been attracted towards shares of its about 30 listed companies.
However, foreign institutional investors (FIIs) seem to have turned more bullish on the group in the recent months and they raised their stake in 12 out of the 15 major Tata companies in the last quarter ended December 31, 2012, as per the latest shareholding data of these companies.
Among these, FIIs raised their stake in IT bellwether firm TCS from 14.83 per cent to 14.96 per cent during the October-December 2012 quarter. Besides, the FII holding in Tata Motors rose from 28.47 per cent to 29.01 per cent during this period, while the same in Tata Steel moved up from 14.71 per cent to 14.79 per cent.
The other Tata companies where FIIs have raised their stake include Tata Power, Trent, Tata Communications, Tata Elxsi, Tata Global Beverages and Indian Hotels. The growing attraction among FIIs for Tata group stocks incidentally come at a time a change of guard has taken place at its Bombay House headquarters.
The 44-year-old Cyrus Mistry took over as head of Tata group following retirement of Ratan Tata on December 28, 2012. Tata, who has now assumed the role of Chairman Emeritus, has spent nearly 50 years with the group including 21 years as Chairman.
The companies where FII holding dipped during the last quarter were Rallis India, Voltas and Tata Teleservices. FIIs reduced their shareholding in Rallis India to 10.8 per cent from 11.85 per cent in September quarter, while in Voltas it dipped to 21.65 per cent from 22.55 per cent.
Tata Teleservices too saw a decline in foreign investors holding from 0.82 per cent to 0.65 per cent in Q3. The Tata group commands a market value of $93 billion .
PUMP IN Rs 22,000 CR IN JANUARY
Overseas investors pumped in a staggering Rs 22,000 crore ($4 billion) in the Indian stock market in January, the seventh consecutive month of inflows. Foreign Institutional Investors (FIIs) were gross buyers of shares worth Rs 77,859 crore, while they sold equities amounting to Rs 55,800 crore translating into a net inflow of Rs 22,059 crore ($4.05 billion), according to Sebi data.
This was the seventh straight quarter of net investment by FIIs in the Indian equities market starting July, 2012. Market analysts attributed huge inflows into Indian equities to a slew of measures taken by the government, including the postponement of GAAR implementation by two years to April 1, 2016 and partial decontrol in diesel prices. Additionally, easing of interest rate by Reserve Bank has also attracted foreign investors.
Another major reason for fund inflow was passage of 'fiscal cliff' bill by the US Senate that delays the automatic spending cuts by two months and proposed raising of taxes on individuals earning more than $400,000 a year and households making more than $450,000. Apart from equities, FIIs have invested Rs 2,947 crore in the debt market in January.
So far in 2013, FIIs pumped in Rs 23,101 crore ($4.25 billion) in Indian equities and poured in Rs 3,639 crore in debt. The strong buying by FIIs pushed the benchmark Sensex by 355 points or 1.82 per cent so far this year to settle at 19,781.19 points.
LIC CUTS STAKE IN 27 NIFTY COS
State-run insurance LIC has lowered its holdings in 27 of the 50 blue-chip firms forming the market benchmark index Nifty, selling shares worth Rs 8,000 crore. Amid stepped-up share purchase by FIIs, LIC appears to have booked profits in many blue-chip stocks, shows an analysis of shareholding data of Nifty companies for the three-month period ended December 31, 2012.
LIC holds Rs 2.33 lakh crore shares in all the Nifty companies put together but lowered its holding in 27 Nifty companies during the quarter.
However, foreign institutional investors (FIIs) seem to have turned more bullish on the group in the recent months and they raised their stake in 12 out of the 15 major Tata companies in the last quarter ended December 31, 2012, as per the latest shareholding data of these companies.
Among these, FIIs raised their stake in IT bellwether firm TCS from 14.83 per cent to 14.96 per cent during the October-December 2012 quarter. Besides, the FII holding in Tata Motors rose from 28.47 per cent to 29.01 per cent during this period, while the same in Tata Steel moved up from 14.71 per cent to 14.79 per cent.
The other Tata companies where FIIs have raised their stake include Tata Power, Trent, Tata Communications, Tata Elxsi, Tata Global Beverages and Indian Hotels. The growing attraction among FIIs for Tata group stocks incidentally come at a time a change of guard has taken place at its Bombay House headquarters.
The 44-year-old Cyrus Mistry took over as head of Tata group following retirement of Ratan Tata on December 28, 2012. Tata, who has now assumed the role of Chairman Emeritus, has spent nearly 50 years with the group including 21 years as Chairman.
The companies where FII holding dipped during the last quarter were Rallis India, Voltas and Tata Teleservices. FIIs reduced their shareholding in Rallis India to 10.8 per cent from 11.85 per cent in September quarter, while in Voltas it dipped to 21.65 per cent from 22.55 per cent.
Tata Teleservices too saw a decline in foreign investors holding from 0.82 per cent to 0.65 per cent in Q3. The Tata group commands a market value of $93 billion .
PUMP IN Rs 22,000 CR IN JANUARY
Overseas investors pumped in a staggering Rs 22,000 crore ($4 billion) in the Indian stock market in January, the seventh consecutive month of inflows. Foreign Institutional Investors (FIIs) were gross buyers of shares worth Rs 77,859 crore, while they sold equities amounting to Rs 55,800 crore translating into a net inflow of Rs 22,059 crore ($4.05 billion), according to Sebi data.
This was the seventh straight quarter of net investment by FIIs in the Indian equities market starting July, 2012. Market analysts attributed huge inflows into Indian equities to a slew of measures taken by the government, including the postponement of GAAR implementation by two years to April 1, 2016 and partial decontrol in diesel prices. Additionally, easing of interest rate by Reserve Bank has also attracted foreign investors.
Another major reason for fund inflow was passage of 'fiscal cliff' bill by the US Senate that delays the automatic spending cuts by two months and proposed raising of taxes on individuals earning more than $400,000 a year and households making more than $450,000. Apart from equities, FIIs have invested Rs 2,947 crore in the debt market in January.
So far in 2013, FIIs pumped in Rs 23,101 crore ($4.25 billion) in Indian equities and poured in Rs 3,639 crore in debt. The strong buying by FIIs pushed the benchmark Sensex by 355 points or 1.82 per cent so far this year to settle at 19,781.19 points.
LIC CUTS STAKE IN 27 NIFTY COS
State-run insurance LIC has lowered its holdings in 27 of the 50 blue-chip firms forming the market benchmark index Nifty, selling shares worth Rs 8,000 crore. Amid stepped-up share purchase by FIIs, LIC appears to have booked profits in many blue-chip stocks, shows an analysis of shareholding data of Nifty companies for the three-month period ended December 31, 2012.
LIC holds Rs 2.33 lakh crore shares in all the Nifty companies put together but lowered its holding in 27 Nifty companies during the quarter.