CNI Research Limited releases a study on
“Rise in FII stake in Q4 and its impact on prices”
CNI research Ltd., the leading BSE listed research organization that specializes in Small & Mid-caps, today released a study on “The Rise in FII stake in Q4 and its impact on prices”.
CNI Research has tabulated the companies in which FIIs have raised stake in Q4. The data of 299 companies is covered in this study as against 322 companies in Q3 FY 10, where the stake had increased. This confirms the faith of FIIs in India and the trend of rising investments in India.
The CNI Research study finds that there were 299 companies where there was an increase in FII stake in the last quarter. Amongst these, the FII’s holding increased over the previous period by upto 2% in 250 companies, from 2% to 5% in 35 companies, from 5% to 10% in 9 companies and above 10% stake in 5 companies.
CNI Research has also found that in 195 companies, the FIIs had increased their holding by less than or equal to 1%. On a study of the price rise of the companies at the end of the quarter, it was found that there were 142 companies where the price rise was upto 10%, 47 companies witnessed a price rise of 10% to 50% and 6 companies had a price rise of over 50%.
Out of the 195 companies which witnessed a price rise offer, an opportunity exists for investors to invest in, but they have to be careful as the price rise is sometimes very erratic and in some cases it is even above 50%.
It is generally believed that investors should identify companies where FII’s have just started consolidating their stake. It is in this category that CNI Research has identified those companies where the FII holding has just started rising as the rise is not even 1% and price rise is also just <=10%.
In Q4 2010 even though the FII stake rise has been restricted to 299 companies only as against 322 companies, the no of companies which has immerged in the filters, has increased to 142 from 107. Out of 299 companies the price rise was seen in 175 companies which are much lower than the last quarter figure of 239 companies.
In CNI’s previous report it was found out that around 107 companies using some parameters which were fit for investment. It is seen that these 107 companies has given good return in one quarter. The average return in these companies was 10.2% which shows that these stocks far outperformed the Sensex growth of 0.35% for the relevant period. Sensex grew from 17465 on 31st Dec 2009 to 17527 on 31st March 2010.
For more information, please contact:
Sunil Kumar Singh
Finesse PR
+91-11-43056200 (30 lines)
