15 companies FIIs, MFs shunned in Q1FY14

Ritika Dange, Riken Mehta
Follow me on Twitter @mehtariken

The quarter gone by, April-June 2013, saw foreign institutional investors (FIIs) and domestic institutional investors (DIIs) exhibit some similarity despite opposite buying behaviour.

The quarter saw domestic institutional investors (DIIs) offload equities worth over Rs 6500 crore from the Indian stock market. Foreign institutional investors (FIIs) have been net buyers in the period under consideration.

Detailed analysis of 373 BSE500 companies reveals both FIIs and DIIs sold stake in 59 companies in the Apr-June period of which 15 companies witnessed a shaving of close to 1% of investments.

The selling in June was the result of Fed's uncertainity on tapering off its stimulus program- quantitative easing (QE3). What spooked foreign investors further were the bond yield differentials that narrowed to a level that made investments in government bonds less profitable for them. Rupee's continuous fall also added to the injury.

According to data provided by Securities and Exchange Board of India (Sebi), FIIs bought Rs 7681 crore worth equities while DIIs or MFs ended the quarter in the negative range, selling Rs 6623 crore worth of investments.

Here are the 15 companies that have seen red days with FIIs and MFs selling their stakes in the quarter gone by: 

Companies	FII			MF/UTI
	Jun' 13	Mar' 13	CHG	Jun' 13	Mar' 13	CHG	Price Chg
Opto Circuits	29.31	35.25	-5.94	0.02	0.03	-0.01	-67%
Dhanlaxmi Bank	25.75	31.26	-5.51	0.53	0.81	-0.28	-33%
United Spirits	42.06	46.69	-4.63	4.62	5.75	-1.13	13%
IVRCL	17.6	21.45	-3.85	2.57	4.06	-1.49	-21%
Sh.Renuka Sugar	13.41	16.74	-3.33	5.24	5.44	-0.2	-29%
Suzlon Energy	9.85	13.13	-3.28	1.39	1.69	-0.3	-34%
Apollo Tyres	26.3	28.62	-2.32	2.72	4.29	-1.57	-32%
SpiceJet	3.8	5.97	-2.17	7.69	10.67	-2.98	0%
Tata Motors	26.2	28.11	-1.91	1.05	1.27	-0.22	5%
Hind. Unilever	20.23	22.11	-1.88	0.97	1.56	-0.59	26%
NCC	37.46	39.06	-1.6	8.64	10.11	-1.47	-27%
Federal Bank	44.34	45.93	-1.59	14.75	15.96	-1.21	-15%
Ambuja Cem.	28.71	30.07	-1.36	0.99	1.3	-0.31	7%
Bharti Airtel	16.24	17.24	-1	2.88	3.18	-0.3	0%
St Bk of India	9.79	10.74	-0.95	4.57	4.85	-0.28	-7%

Spotlight now on companies where FIIs raised stake recently

Riken Mehta
moneycontrol.com

The sell-off by foreign institutional investors in government securities has finally caught up with the equity market. With the rupee close to its record low and the pressure on the currency expected to persist near term, fears are that FIIs will start pulling money out of Indian shares as well.

Stocks have been beaten down to a point where it may not make much sense for the long term players among FIIs to sell at these levels. However, short term players like hedge funds and exchange traded funds are another class of investor altogether.

These funds chase quick gains, and absolute price moves and currency swings matter more than fundamental factors. Beyond a certain threshold of tolerance, they will dump shares irrespective of the price.

The spotlight is now on the companies where FIIs increased their stake in the recent past (data is available only till the March quarter)

An analysis of the shareholding pattern of BSE-100 companies shows that foreign funds have hiked stake in nearly 50 companies by 1-9 percent between September 2012 and March 2103. So far this calendar, till May, foreign funds net bought around Rs 61,000 crore of shares. There is no way of knowing how much of the money has come from long term players like pension funds, insurers and India-dedicated funds, and how much from short term funds.

Source: Capitaline. % Chg is the price change from May 17 to June 20

Company	FIIs holding (Mar qtr)	FIIs holding (Sep qtr)	Inc in Holding	% Chg
Shriram Trans	49.45	40.97	8.48	-7.00%
Axis Bank	40.94	32.79	8.15	-19.10%
Suzlon Energy	13.13	5.43	7.7	-35.10%
IndusInd Bank	40.49	34.26	6.23	-12.10%
Federal Bank	45.93	39.89	6.04	-9.70%
Zee Entertainment	41.69	36.14	5.55	-6.10%
NTPC	9.37	3.95	5.42	-12.30%
Dr Reddy's Labs	29.66	24.52	5.14	0.00%
M & M	35.01	30	5.01	-4.50%
HDFC	73.67	68.72	4.95	-9.60%
Satyam Computer	30.35	26.01	4.34	5.80%
NMDC	4.76	0.66	4.1	-15.50%
HCL Technologies	24.32	20.31	4.01	5.50%
Adani Enterp	18.97	15.08	3.89	-22.30%
HPCL	9.75	6.24	3.51	-19.50%
Cipla	23.89	20.79	3.1	-10.70%

Bargain hunting: 24 stocks you can pick up post mkt carnage

 
Riken Mehta
moneycontrol.com

It was carnage across the board on Thursday after the rupee touched an all time low of 59.93. Fears of a large scale pullback of FIIs from India saw the Sensex crashing 526 points, lead by shares in the metal, banking and realty sectors.

Yet, periods of turmoil like these also provide investors with an opportunity to buy stocks at reasonable valuations. One of the yardsticks used by investors is the market price compared to the book value.

Book value is the net asset value of the company. Technically speaking, it is the sum of the company’s equity capital and reserves divided by number of shares in issue. Simply put, this is the price that a shareholder would get per share if the company were to be liquidated. The book value is a reasonable indicator of whether a stock is overpriced or undervalued.

As per latest data, 25 companies out of BSE 100 are trading at discount to book value post Thursday’s sell-off. Check them out

Source: Capitaline. Close price as on 20th June, 2013

Company	Close Price	Cons Book Value	Latest P/BV
HDIL	36.15	257.8	0.14
Reliance Infra	339.8	957.5	0.35
Unitech	21.05	43.54	0.48
Sterlite Inds	81.4	161.78	0.50
IDBI Bank	74.25	145.63	0.51
SAIL	53.55	99.45	0.54
Hindalco Inds	97.7	178.09	0.55
HPCL	251.65	394.48	0.64
Bank of India	260.25	390.81	0.67
Reliance Capital	330.7	487.34	0.68
Canara Bank	358.5	522.42	0.69
Reliance Comm	124.65	181.26	0.69
Sesa Goa	139.7	201.07	0.69
Bank of Baroda	576.6	785	0.73
Punjab Natl Bank	687.35	934.58	0.74
NHPC Ltd	18.35	24.69	0.74
Union Bank	201.1	265.14	0.76
Tata Steel	272.4	351.85	0.77
Power Fin Corp	154.4	183.01	0.84
JSW Steel	687.2	762.09	0.90
IOC	240.9	259.63	0.93
Reliance Power	64.55	66.24	0.97
Jindal Steel	222.15	227.35	0.98
Adani Enterp	182.65	186.88	0.98