FII Ownership in Indian Equities has been rising and has touched 22.2% in SENSEX and 16.9% in BSE 500 [Overall Market] FII ownership has seen the most significant move up since the Mar-09 low of 14.8% [BSE 500]. They hold 18.9% of BSE100 and 17.7% of BSE200.
FII Portfolio Reshuffle in March Quarter FIIs have had an outsized overweight on Indian Financials (800-1000bps) since early 2009. Mar-10 quarter was the first time that we saw a significant decline of 382bps and the overweight is now at more manageable levels of 482bps. Industrials (+239bps) and Telecoms (+250bps) are the other sectors where FIIs have overweight positions. Energy (-647bps) and Materials (-160bps) are the biggest underweight sectors in the FII portfolio. The quarter saw FIIs reducing positions in Financials (-382bps change qoq), bulk of it went to reducing the underweight position in Materials (+231bps change qoq). All other sector weight changes were marginal on qoq basis.
Top-5 holding increases relative to benchmark as on 31 Mar ’10: HDFC (+2.7%), ICICI (+2.5), Infosys (+1.1%), BHEL (+0.8%), and TCS (+0.7%).
Top-5 declines were seen in RIL (-3.4%), ITC (-1.8%), L&T (-1.7%), JSW Steel& Power (-1.0) and NTPC (-0.8%).
Stay tuned for the next post where we analyze how Domestic Mutual Funds and Insurance Companies rejigged their portfolio.