Monday, June 1, 2009

FIIs pump in Rs 3,500 cr through 62 bulk deals in April, May

With FIIs getting back the voracious appetite for Indian stocks, they have put in over Rs 3,500 crore through just 62 bulk deals on the Bombay Stock Exchange in the first two months of the current financial year.

According to an analysis of bulk deals on the exchange in April and May this year, Foreign Institutional investors' (FII) transacted as many as 62 bulk deals buying shares worth Rs 3,516.61 crore, with the biggest deal being the sale of over five per cent stake in DLF for Rs 2,106 crore.

Three foreign institutional investors — Deutsche Securities Mauritius, Euro Pacific Growth Fund and Copthall Mauritius Investment — invested as much as Rs 2,106.1 crore in DLF for buying 9.15 crore shares representing 5.39 per cent stake in the realty firm last month.

A bulk deal refers to a transaction which involves buying or selling of more than 0.5 per cent of the number of equity shares of any listed company.

Other key bulk deals in the period include those of private sector lender HDFC and commercial vehicle maker Eicher Motors.

FIIs have turned positive from the starting of the current fiscal year, pouring in Rs 6,500 crore in April and Rs 20,117 crore ($4.1 billion) in the month of May, making the total of $4.2 billion (around Rs 20,473 crore) to date.

Other FII's which invested in the stocks include Goldman Sachs Investment Mauritius, Sansar Capital Mauritius and Deutsche Securities Mauritius.

The stocks which saw buying from the FIIs are Eicher Motors, Vijay Mallya-led United Breweries, HDFC, Aban Offshore, Adlabs Films, Merk, HDFC Bank.

Meanwhile, according to a recent research report, domestic mutual funds are shying away from bulk deals involving large chunks of shares while investing in equity markets as they prefer to retain the confidentiality of transactions.

According to data compiled by SMC Capitals, during the period from 2006 to April 2009, the volume traded on the bulk deal counter of the stock exchanges stood at Rs 5,00,500 crore, but the mutual funds accounted for just three per cent of the total transactions.

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