Foreign institutional investors (FII) have increased their stake in one out of every four companies, including Reliance Industries, Maruti Suzuki India and Infosys Technologies, in the fourth quarter of fiscal 2008-09, an analysis by capital market research firm CNI Research shows.
According to the analysis, FIIs have increased their stake in 109 firms out of the 394 companies surveyed. The report shows that on an average, foreign holdings have risen in about one-fourth of the companies surveyed.
FIIs have hiked their stake in car maker Maruti Suzuki India by 5 per cent to 19.4 per cent, in Reliance Industries by 0.5 per cent to 16 per cent and in Infosys their holdings have increased by 1.9 per cent to 34.9 per cent.
While other companies whose FII holdings went up in the fourth quarter include -- ACC (10.3 per cent), Punj Lloyd (15 per cent), Nestle (8 per cent), Tata Steel (13.2 per cent), Wipro (5.9 per cent), IndusInd Bank (18.7 per cent) and UTV Software (5.6 per cent).
"This study should act as precursor for investors to decide the stocks in which they should be investing. Companies where FII are raising their stake have a greater probability of their share prices rising against other companies," CNI Research CMD Kishor P Ostwal said.
