FIIs turn bullish in power related stocks in Jan-March quarter
New Delhi: Overseas investors scaled up their exposure to power related companies such as Tata Power, Reliance Power, PFC and REC during the January-March quarter this year amid sluggish stock market conditions.
According to an analysis of 13 listed companies related to the power sector, 11 companies witnessed rise in their foreign institutional investor (FII) holdings during January-March over the preceding quarter.
Only two companies - Power Grid and Adani Power -- saw FII holding falling during the quarter under review.
"In anticipation of action from the government on coal front FIIs have been investing in power companies," CNI Research CMD Kishor Ostwal said.
Analysts said that most of the funds invested in power stocks in the first two months of this year considering the sector as a defensive pick.
FIIs increased their holding in PFC from 7.75 percent to 9.85 per cent at the end of March quarter.
In Reliance Power FII stake surged to 5.23 percent in March quarter from 4.6 percent in December quarter.
In addition, foreign fund houses stake in Tata Power rose from 20.04 percent to 21.87 percent. Besides, BHEL has seen a jump of overseas investors stake to 13.48 per cent during the fourth quarter from 12.23 percent in December quarter.
NTPC saw its FII holding increasing from 3.73 percent to 4.02 percent and the exposure in NHPC grew to 1.38 percent from 1.33 percent in December quarter.
Similarly, in Torrent Power foreign funds hiked their stake from 1.87 percent in December quarter to 2.46 percent in March quarter, while GVK Power & Infrastructure saw the holding rise to 17.98 percent from 17.30 percent during the same period.
Among others, FIIs raised their exposure in Larsen & Toubro from 13.84 percent to 15.62 percent, in GMR Infra the stake rose to 11.83 per cent from 11.62 per cent and in REC the stake jumped to 19.53 percent from 17.93 percent.
However, in two companies, Power Grid and Adani Power, FII stake in fourth quarter have come down by over 1 percent.
The FII holding in Power Grid fell from 13.07 percent to 12.93 percent at the end of January-March quarter and during the same period, FII shareholding in Adani Power slipped from 10.26 percent to 9.41 percent.
FIIs have made an investment of Rs 42,407 crore into the equity market so far this year and Rs 17,270.40 crore in the debt market during the same period.
The BSE benchmark Sensex has gained about 6 percent so far this year, but during the period the trend has been very volatile where the index has also slipped below the crucial 18,000 levels.