It is mandatory for companies to announce the shareholding pattern at the end of every quarter. The buy or sell pattern of various classes of investors can have interesting implications.
Here are highlights from the shareholding pattern of BSE 500 companies as of March 2012:
* Promoters and government ownership has dropped to 53 per cent of BSE 500 market cap of Rs 54,25,612 crore or about $ 1 trillion in March 2012 against 56 percent in the quarter to March 2008. This means promoters have used up their ownership to fund expansion over the past four years.
* Foreign institutional investors have increased their holding to 19.2 per cent from 18.5 per cent four years ago. The value of equity owned by them is $ 190 bn.
* The public shareholding has drop to 11.2 per cent in 4 years from 11.5 per cent. This shows that the retail investor apathy towards equity continues.
* The non-promoter corporate ownership rose 4.5 per cent from 3.7 per cent over the past 4 years. This shows that private equity investment has increased. It also shows companies are making strategic investments. For example, Reliance Industries has injected cash in companies like East India Hotels.
* Foreign institutional investors were buyers to the tune of $9bn whereas domestic mutual funds sold Indian shares worth of $ 1bn in the March 2012 quarter. Banks and insurance companies sold shares to the tune of $4bn during the quarter ended Mar12.
* Banks and financial services, Auto and Metals saw major buying as they were beaten down in 2011.
* Among Large Caps: Top buys include ITC, HDFC Bank, Axis, ICICI, L&T while top shares sold include Bharti, Cipla, HUL, TCS, Cairn and Idea.
* Both foreign and domestic institutional investors are overweight on Pharma, Consumers and Engg & Capital Goods and underweight on Metals, Oil & Gas and Power. Overweight means they are bulling on the profit growth outlook. Underweight means market expectations are low.
* FIIs are overweight on Banks & financial services whereas domestic institutional investors are underweight on the same. Two class of investors have diverse view on one particular sector.
* Top Mid Cap companies bought during the quarter include Hathway, Max India and Midcap banks while top shares sold include Radico Khaitan, Jain Irrigation, Educomp, Rallis, GNFC and Indraprastha Gas.
* Promoter stake rose in SBI, Tata Steel, Alfa Laval, Bajaj Fin, IOB, Indiabulls Real Estate, Akzo Nobel, Religare Ent, Shri City Union, Alok Inds, Indiabulls Fin and Sintex. Companies where valuation falls quickly, controlling shareholders or promoters consolidate their ownership.
* Promoter stake fell in ONGC, BOB, PNB, Wipro, IDFC, Hathway Cable, Godrej Properties, Vijaya Bank, Manappuram Fin, Dewan Housing, United Bank, Punjab & Sind Bank, Mindtree, Syndicate Bank and Trent. The shareholding of promoters falls if companies expand equity or owners sell stake. (like in state-owned companies like ONGC).
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