14th November, 2011

Market & Movers

Institutional flows & allocations

Aditya Vikram Jha

aditya.jha@rkglobal.in
R K Global Shares & Securities Ltd

Flow Analysis- Q2FY12

FIIs cautiously invested with trembling global market conditions.
The magnitude of FIIs flows in equities during the past two sequential quarters has been the lowest since Q4FY09 due to global
concerns witnessed in debt trapped Euro-zone and the US. FIIs have shift their preference from high risk equity markets to low risk
debt market during the period. FIIs net flows in Indian markets declined 89% Q-o-Q to `884.7cr during Q2FY12 as compared to
`7803.4crs in Q1FY12 on account of outflows of `2962crs from equity markets in Q2FY12 as compared to inflow of `5172crs during
Q1FY12. However, its focus in debt market continued this quarter with net inflow of `3846.5crs in Q2FY12, up 46% Q-o-Q. During
Q2FY12, FIIs shown interest in sectors like Auto, Utilities and BFSI where they increased their stake to 7.3%, 10.5% & 21.9%
respectively during Q2FY12 from 3.9%, 9.3% and 21.2% respectively during Q1FY12 in BSE100 companies. However, change in FIIs
weight in BSE100 was also attributed to the composition change of the index and free-float adjustments done by the FIIs.
Domestic Institutional Investors hold broader market this quarter
DIIs, on the other hand, has invested `3435cr and `9829cr in Q1FY12 and Q2FY12 respectively. However, DII invested `13265crs in
Apr- Sep FY12 compared to a outflow of `19983crs same period last year from the market, with major redemption took place in
Q2FY11. DIIs holding in BSE100 stocks has increased by 412bps in Q2FY12 to 10.1% as compared to 9.7% in Q1FY12. In BSE100
stocks, DII favored Utilities, Auto and Industrials stocks where their holding increased from 5.1%, 5.3% and 0.9% in Q1FY12 to
10.8%, 6.4% and 1.1% in Q2FY12 respectively. While, they reduced their holdings in Infra, Telecom, Cement, and Pharma stocks
during the same period. Among the DIIs, Insurance companies increased their holding in Auto and Utilities stocks, while reduced
holding in Infra, FMCG, Pharma, and Energy stocks during the same period.
Fund raising stemmed as fragile global macroeconomics impacted investor sentiments
Weakening global economy has impacted investors sentiment and thus big ticket IPO/FPO like ONGC, IOC & SAIL etc has been
delayed multiple times. Fund raising activities has slowed down significantly during Jan11-Sept11 as only 41 companies raised funds
amounting to `1.3trillion through IPOs as compared to `40trillion raised by 64 companies during the same period last year. Fund
raised through QIP route has also reduced to 8 issuance amounting to `4308crs during Jan-Sep 2011, compared to 33 issuance
amounting to `28339crs during the same period last year.

Current situation, a key highlight

During Oct11, FIIs net inflow stood `3078.8cr (US$ 634.3mn) of which `1677.4crs (US$ 346.5mn) in equity market and `1401.4crs
(US$287.8mn) in debt market. On the other hand, DIIs were the net seller of `2295.3cr during Oct11. While, Benchmark
index, Sensex improved 7.6% M-o-M in Oct11.

FIIs Flows vs Sensex

Daily flow of FII vs Sensex

22000

9500

Sensex return with FII flow

FII Inflows (LHS)

56800

FII (LHS)

SENSEX (RHS)

Sensex Return (RHS)

21000

7500

1500

46800
20000

5500

2000

1000

1500

18000

-500

17000

-2500

16000

-4500

15000

500
bps

19000

3500

` Crore

` Crore

36800

26800
0
16800

-500

6800

-1000

-3200

Sep-09

Dec-09

Mar-10

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Sep-11

-1500
2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

Q1FY12

Q2FY12

Source: SEBI, BSE, ACE EQUITY, RK GLOBAL RESEARCH

Source: SEBI, BSE, Ace Equity, R K Global Research

M-o-M Investment flow of FIIs

35000

Equity

FII focus shifts towards debt, Sensex falls

FII pumped funds in equities during Q2-Q3FY11 taking index
from 17700 level at the end of Jun10 to 20500 level in Dec10.
However, following the European debt crisis and fear of global
slowdown, FII activity reversed dragging the index to a low of
16450 in Sep11.

Debt

30000
25000

20000
15000

5000
0
Sep

2011

Jul

May

Mar

Jan

Nov

2010

Sep

Jul

May

Mar

Jan

Nov

2009

Sep

Jul

-15000

May

-10000

Mar

-5000

Jan

` Crore

10000

FIIs cumulative net flows in equity market has worse

amounting to a outflow of `2961.8cr in Q2FY12 as compared
to a net inflow of `5171.1cr in Q1FY12. While, in debt
market, FII net inflows increased to `3846.5crs in Q2FY12 a
increase of 46% Q-o-Q, while major chunk in debt market can
be seen in Q4FY11 with net inflows of `11400crs.

Share Holding Pattern in BSE100

BSE100 Shareholding Pattern

2.2%
11.6%

15.0%

2.3%

2.0%

13.6%

29.4%

Q2FY11

13.0%

Q1FY12
4.9%

5.4%
2.0%
3.1%

6.9%

17.5%

Quarterly FII market value in BSE 100 stocks vis--vis BSE 100 index

Quarters

FII

Index
Q-o-Q
BSE 100
Var

Q-o-Q
Var

FII

13.2%

Q2FY12

5.4%

1.8%
3.0% 5.9%

19.1%

32.1%

33.8%

12.8%

Market Cap( ` billions)

Q-o-Q
Q-o-Q
BSE 100
Var
Var

Q2FY12

337.6

-14.7% 8613.2

-12.1%

6907.6

-7.6%

42191.0

-11.9%

Q1FY12

395.7

-3.2% 9803.8

-2.8%

7475.5

-2.7%

47888.7

-2.6%

Q4FY11

408.8

-6.5% 10095.7

-5.4%

7689.2

-4.1%

49187.4

-4.2%

Q3FY11

437.3

-3.0% 10675.1

0.4%

8022.1

6.4%

51366.6

4.1%

Q2FY11

450.8

8.8% 10627.3

12.5%

7539.1

35.5%

49369.5

13.7%

Q1FY11

414.2

1.1% 9442.5

1.5%

5561.1

0.4%

43474.5

2.3%

Source: Ace Equity, BSE, R K Global Research

Computed by deriving market value of FII holding using quarter closing stock prices of BSE100
stocks, FII Index value is computed by dividing FII market value by total no. of shares held by FII in
BSE100 stocks; Only 99 BSE100 stocks are included in FII computation as Coal India was not listed
& denotes FIIs market value increase & decrease relative to BSE100

1.7%
3.1%5.2%

17.1%

FII holding increased 100bps in BSE 100 stocks in Q2FY12

FII holding in BSE100 stocks has increased to 13.2% in Q2FY12
as compared to 12.8% in Q1FY12. While major churning on Q-oQ basis was witnessed in Public holding which stood at 13.6% in
Q2FY12 as compared to 11.6% in Q1FY12, while Indian
promoters (17.1%), Insurance companies (5.4%) and ADR/GDRs
(2.3%) has witnessed rise in their holding in BSE100 stocks.
FII performance mixed in value terms, but dismal in per unit
terms relative to BSE100
FIIs holdings market value in BSE100 stocks has declined by
7.6% Q-o-Q in Q2FY12 as compared to 11.9% Q-o-Q decline in
market cap of BSE100 during the same period. Out of the six
quarters we have analyzed, FIIs have outperformed the BSE100
index in two instances (Q3FY11, Q2FY11) while underperformed
in the rest. On per unit value terms, FIIs have not fared well as
compared to BSE100 index as they have underperformed the
index five out of six instances we have analyzed.

FIIs weight in BSE100

Q-o-Q changes in wt. of FII in BSE 100 Scripts - FII's maintain OW in Auto, Utilities and BFSI, while UW in Industrial, Mining and IT/ITES
Company

Q2FY12 Q1FY12 Q4FY11

BFSI
Axis Bank
Bank Of Baroda
Bank Of India
Canara Bank
Federal Bank
HDFC Bank
HDFC
ICICI Bank
IDBI Bank
Indiabulls
IndusInd Bank
IDFC
Kotak MahBank
LIC Housfin
PFC
PNB
R Capital
REC
Shriram Tranfin
SBI
UBI
Yes Bank
Metal/Mining
Coal India
Hindalco
Jindal Steel
JSW Steel
NALCO
NMDC
Sesa Goa
SAIL
Sterlite
Tata Steel
TELECOM
Bharti Airtel
Idea Cellular
R Com
Tata Comm

21.97%
0.70%
0.30%
0.43%
0.34%
0.37%
3.63%
4.54%
2.33%
0.16%
0.51%
0.87%
3.66%
1.04%
0.95%
0.45%
0.31%
0.26%
0.97%
0.52%
0.29%
0.33%
0.84%
9.10%
2.11%
2.86%
1.08%
0.25%
0.58%
0.16%
1.10%
0.88%
2.20%
0.74%
5.91%
3.45%
2.07%
0.86%
0.02%

21.24%
0.77%
0.33%
0.44%
0.36%
0.36%
0.72%
4.52%
2.35%
0.17%
0.51%
0.86%
3.62%
1.02%
1.00%
0.42%
0.32%
0.29%
0.99%
0.51%
0.37%
0.40%
0.89%
10.56%
2.13%
3.12%
1.14%
0.29%
0.61%
0.15%
1.12%
0.89%
2.37%
0.87%
6.25%
3.54%
1.77%
0.92%
0.02%

21.62%
0.82%
0.34%
0.41%
0.35%
0.33%
0.71%
4.57%
2.37%
0.20%
0.54%
0.86%
3.97%
1.00%
1.04%
0.22%
0.33%
0.28%
1.09%
0.49%
0.43%
0.42%
0.84%
10.65%
2.05%
3.15%
1.16%
0.29%
0.61%
0.14%
1.11%
0.93%
2.36%
0.89%
6.13%
3.48%
1.74%
0.89%
0.02%

Var
3.45%
-9.87%
-10.84%
-1.62%
-6.17%
2.47%
402.06%
0.33%
-1.12%
-9.30%
0.48%
1.56%
0.99%
2.47%
-5.17%
7.07%
-2.71%
-9.72%
-2.52%
1.76%
-20.48%
-16.66%
-5.16%
-13.85%
-0.74%
-8.39%
-5.01%
-10.91%
-4.34%
0.59%
-2.50%
-1.39%
-6.96%
-14.37%
-5.42%
-2.54%
16.73%
-5.86%
-1.17%

Company
CEMENT
ACC
Ambuja
Grasim
Ultratech
OTHERS
Adani Ent
Tata Chem
United Phos
Zee Enterprise
ENERGY
BPCL
Cairn India
Essar Oil
GAIL
HPCL
IOC
OVGC
RIL
Auto
Ashok Leylnd
Bajaj Auto
Exide Indust
Hero Moto
M&M
Maruti Suzuki
Tata Motors
INDUSTRIAL
ABB
Bharat Forge
BHEL
Crompton
Cummins
Siemens
IT/ITES
HCL
Infosys
TCS
Wipro

Q2FY12 Q1FY12 Q4FY11

2.25%
0.16%
1.94%
0.11%
0.22%
3.53%
0.94%
0.18%
0.91%
1.79%
6.97%
0.14%
0.67%
0.22%
0.90%
0.17%
0.10%
2.34%
3.00%
7.32%
2.28%
0.24%
0.77%
0.37%
0.86%
0.29%
3.12%
1.17%
0.04%
0.14%
0.33%
0.53%
0.16%
0.06%
3.56%
0.75%
1.11%
1.33%
0.66%

2.39%
0.15%
1.93%
0.11%
0.19%
3.83%
0.93%
0.19%
0.89%
1.82%
7.47%
0.13%
0.75%
0.24%
0.87%
0.17%
0.11%
2.19%
3.01%
3.98%
0.95%
0.24%
0.72%
0.36%
0.77%
0.29%
0.66%
1.43%
0.04%
0.15%
0.34%
0.73%
0.12%
0.05%
3.92%
0.78%
1.12%
1.33%
0.70%

2.66%
0.15%
2.21%
0.11%
0.19%
3.85%
0.92%
0.19%
0.87%
1.86%
7.74%
0.13%
1.18%
0.22%
0.84%
0.15%
0.11%
2.02%
3.08%
3.93%
0.93%
0.25%
0.68%
0.35%
0.75%
0.30%
0.68%
1.50%
0.04%
0.15%
0.34%
0.74%
0.12%
0.11%
3.90%
0.78%
1.10%
1.32%
0.70%

Var
-5.71%
6.27%
1.01%
-1.02%
11.87%
-7.94%
1.32%
-6.80%
2.21%
-1.63%
-6.69%
10.87%
-10.89%
-7.38%
4.04%
-0.94%
-7.65%
6.76%
-0.28%
83.74%
139.17%
0.77%
5.91%
3.38%
11.88%
2.80%
375.95%
-18.45%
-3.21%
-9.32%
-1.54%
-26.42%
31.95%
10.31%
-9.39%
-3.79%
-0.61%
0.05%
-5.34%

Company

Q2FY12 Q1FY12 Q4FY11

FMCG
Asian Paints
Dabur
HUL
ITC
Nestle
Tata Global
Titan
United Spirits
INFRA
DLF
GMR Infra
HDIL
JP Associates
L&T
Mundra Port
R Infra
Unitech
PHARMA
Cipla
Divi's Lab
Dr Reddy's
Glaxosmithline
Glenmark
Lupin
Ranbaxy
Sun Pharma
ULITILIES
Adani Power
NHPC
NTPC
Power Grid
R Power
Suzlon
Tata Power

10.61%
0.09%
1.76%
2.02%
6.28%
0.06%
0.30%
0.63%
0.37%
12.18%
1.40%
2.51%
0.89%
2.09%
0.52%
1.12%
0.21%
4.46%
3.03%
0.58%
0.08%
0.24%
0.08%
0.47%
0.62%
0.20%
1.04%
10.47%
1.19%
1.08%
1.53%
3.23%
0.65%
1.15%
2.51%

11.16%
0.09%
1.73%
2.10%
5.96%
0.05%
0.29%
0.59%
0.36%
13.16%
1.34%
2.55%
0.92%
2.17%
0.53%
1.19%
0.22%
4.23%
3.22%
0.63%
0.08%
0.22%
0.08%
0.45%
0.56%
0.20%
1.01%
9.27%
1.11%
1.12%
1.55%
3.30%
0.72%
1.22%
0.25%

10.13%
0.07%
1.59%
1.98%
5.78%
0.05%
0.27%
0.02%
0.35%
13.47%
1.42%
2.60%
0.87%
2.35%
0.49%
1.10%
0.22%
4.41%
3.21%
0.65%
0.11%
0.23%
0.08%
0.44%
0.52%
0.17%
1.01%
9.16%
1.14%
1.14%
1.55%
3.21%
0.69%
1.17%
0.25%

Var
-4.93%
1.81%
1.74%
-3.68%
5.24%
2.13%
4.53%
6.88%
2.92%
-7.50%
4.11%
-1.61%
-3.70%
-3.77%
-2.86%
-5.81%
-6.63%
5.37%
-5.62%
-7.84%
-6.21%
6.10%
1.85%
4.49%
10.96%
0.80%
2.78%
12.97%
6.67%
-3.62%
-1.08%
-2.08%
-9.27%
-5.83%
893.82%

FIIs sector-wise movements

Sector-wise Q-o-Q growth in value of FII holding in BSE100*

Q-o-Q Sector-wise changes in wt. of BSE100 and FIIs Holding in BSE100 stocks
Sectors

Q2FY12
Q1FY12
Q4FY11
BSE 100 wt FII wt OW/UW BSE 100 wt FII wt OW/UW BSE 100 wt FII wt OW/UW

Automobile
BFSI
Energy
Cement
Others
Matal/Mining
IT/ITES
INFRA
Inldustrials
FMCG
Telecom
Pharma
Utilities

4.9% 7.3%
2.4%
10.3% 22.0% 11.7%
12.6% 7.0% -5.6%
1.3% 2.2%
0.9%
1.8% 3.5%
1.7%
16.3% 9.1% -7.2%
3.7% 3.6% -0.1%
8.8% 12.2%
3.4%
1.4% 1.2% -0.2%
8.7% 10.6%
1.9%
6.1% 5.9% -0.2%
2.2% 3.0%
0.9%
22.1% 10.5% -11.6%

2.8%
9.5%
13.2%
1.4%
1.9%
17.1%
3.8%
9.2%
1.4%
9.1%
6.4%
2.3%
21.8%

4.0%
1.2%
21.2% 11.7%
7.5% -5.7%
2.4%
1.0%
3.8%
1.9%
10.6% -6.5%
3.9%
0.1%
13.2%
3.9%
1.4%
0.0%
11.2%
2.0%
6.2% -0.1%
3.2%
0.9%
9.3% -12.5%

2.8%
9.5%
13.3%
1.4%
1.9%
17.2%
3.9%
8.8%
1.4%
8.6%
6.4%
2.3%
21.9%

3.9%
1.1%
21.6% 12.1%
7.7% -5.5%
2.7%
1.2%
3.9%
1.9%
10.6% -6.6%
3.9%
0.0%
13.5%
4.7%
1.5%
0.1%
10.1%
1.5%
6.1% -0.3%
3.2%
0.9%
9.2% -12.8%

Major movement of FIIs Holding during FY10-FY11 in BSE 100 scripts

Company

Q2FY12 Q1FY12 Q4FY11 Q3FY11 Q2FY11

Tata Power

2.5%

0.3%

0.3%

0.3%

0.3%

HDFC Bank

3.6%

0.7%

0.7%

0.7%

0.8%

Tata Motors

3.1%

0.7%

0.7%

0.7%

0.7%

Ashok Leylnd

2.3%

1.0%

0.9%

1.1%

1.2%

Idea Cellular

2.1%

1.8%

1.7%

1.7%

1.5%

Cummins

0.2%

0.1%

0.1%

0.1%

0.1%

Cairn India

0.7%

0.7%

1.2%

1.1%

1.2%

Tata Steel

0.7%

0.9%

0.9%

0.8%

0.9%

Crompton

0.5%

0.7%

0.7%

0.8%

0.8%

SBI

0.3%

0.4%

0.4%

0.5%

0.5%

UBI

0.3%

0.4%

0.4%

0.5%

0.6%

JSW Steel

0.3%

0.3%

0.3%

0.3%

0.3%

& denotes Q-o-Q increase/decrease in FIIs holding in BSE100

Sectors
Auto
BFSI
Energy
Cement
Others
Matal/Mining
IT/ITES
INFRA
Inldustrials
FMCG
Telecom
Pharma
Utilities

Q2FY12
27.6%
-5.6%
-8.0%
19.2%
-20.5%
-29.4%
-14.0%
-19.6%
-28.1%
-1.7%
-3.5%
-2.1%
7.2%

Q1FY12
2.7%
-6.5%
-13.8%
-16.0%
8.1%
-3.0%
-5.3%
-1.7%
-11.3%
23.3%
12.1%
6.7%
1.9%

Q4FY11
82.7%
-65.1%
8.2%
3.0%
-2.1%
-2.6%
-4.4%
-20.4%
-8.9%
-6.9%
-3.1%
-13.0%
-0.4%

Q3FY11
11.8%
-4.4%
8.7%
11.8%
21.5%
23.8%
18.7%
-13.8%
1.0%
-0.1%
-3.2%
50.5%
51.9%

FIIs were OW on BFSI and UW on Utilities, Metals and Energy

relative to BSE100
During Q2FY12, FIIs weight-age in BSE100 stocks has declined Q-o-Q
basis in almost every sector barring FMCG and Cement, but they
continue to hold more of BFSI (22% wt), Infra (12.2% wt.) and Auto
(7.3% wt.) stocks. However, FIIs remained OW as compared to
BSE100 weight in BFSI by 11.7% while they were UW on sectors like
Utilities, Metal and Energy during Q2FY12. Though, change in FIIs
weight in BSE100 was also attributed to the composition change of
the index and free-float adjustments done by the FIIs.
FIIs witnessed value appreciation in Auto, Cement and Utilities
while value declined in Metal/Mining, Industrial and Infra in
Q2FY12 as compared to Q1FY12
FIIs market value has appreciated in sectors like Auto
(27.6%), cement (19.2%) and Utilities (7.2%) on Q-o-Q basis, while
their value declined in Metal/Mining (-29.4%), Industrial (-28.1%)
and Infra (-19.6%).

DIIs flows vs Sensex

Daily flow of DII vs Sensex

Sensex return with DII flow

DII Inflows (LHS)

22000
DII (LHS)

Sensex Return (RHS)

2000.0

SENSEX (RHS)

2100

10000.0
21000

1500.0

1600

5000.0
20000

1000.0

1100

0.0
19000

500.0

100

18000

-5000.0

bps

` Crore

` Crore

600

0.0

-10000.0

-400
17000

-15000.0

16000

-20000.0

-500.0

-900

-1000.0

-1400

-1900

15000

Sep-09

Dec-09

Mar-10

Jun-10

Sep-10

Source: SEBI, BSE, Ace Equity, R K Global Research

Dec-10

Mar-11

Jun-11

-25000.0

-1500.0
2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 Q1FY12 Q2FY12

Sep-11
Source: SEBI, BSE, ACE EQUITY, RK GLOBAL RESEARCH

DIIs hold the broader market to sustain above 15000 level

DII pumped funds of `9829.5crs during Q2FY12 as compared to `3435.3crs during the same period last year. However, DII
withdrawn cumulatively `17268crs during FY11 as against net buying of `24280crs during FY10. Thus, DII were the most
beneficiated among the investors by entering when markets are at their lows and exiting when they are attaining their previous
high. On M-o-M basis DII withdraw `2295.3crs in Oct 2011 compared to a net inflow of `1747crs during Sep2011.

DIIs weight in BSE100

Q-o-Q changes in wt. of DII in BSE 100 Scripts - DII's maintain OW in Auto and Utilities, while UW in Infra and Pharma
Company

Q2FY12 Q1FY12

Q4FY11

BFSI
Axis Bank
Bank Of Baroda
Bank Of India
Canara Bank
Federal Bank
HDFC Bank
HDFC
ICICI Bank
IDBI Bank
Indiabulls
IndusInd Bank
IDFC
Kotak MahBank
LIC Housfin
PFC
PNB
R Capital
REC
Shriram Tranfin
SBI
UBI
Yes Bank
Metal/Mining
Coal India
Hindalco
Jindal Steel
JSW Steel
NALCO
NMDC
Sesa Goa
SAIL
Sterlite
Tata Steel
TELECOM
Bharti Airtel
Idea Cellular
R Com
Tata Comm

12.81% 12.43%
0.18%
0.16%
0.41%
0.44%
0.43%
0.47%
0.31%
0.32%
0.00%
0.25%
1.62%
0.36%
1.31%
1.46%
1.83%
2.00%
0.98%
1.07%
0.07%
0.08%
0.21%
0.26%
1.79%
1.93%
0.24%
0.28%
0.26%
0.25%
0.84%
0.84%
0.36%
0.38%
0.08%
0.08%
0.41%
0.36%
0.03%
0.03%
0.74%
0.77%
0.49%
0.47%
0.22%
0.17%
10.95% 11.57%
0.63%
0.68%
1.70%
1.70%
0.44%
0.42%
0.06%
0.07%
0.84%
0.91%
2.11%
2.32%
0.28%
0.28%
1.96%
2.16%
1.88%
1.94%
1.68%
1.75%
5.28%
5.57%
2.08%
2.24%
1.82%
1.83%
1.17%
1.27%
0.21%
0.23%

10.20%
0.15%
0.44%
0.48%
0.36%
0.29%
0.38%
1.41%
1.94%
1.04%
0.07%
0.27%
1.83%
0.28%
0.19%
0.24%
0.39%
0.08%
0.31%
0.05%
0.74%
0.45%
0.24%
11.75%
0.75%
1.74%
0.40%
0.08%
0.93%
2.35%
0.29%
2.18%
2.03%
1.75%
5.69%
2.32%
1.83%
1.30%
0.24%

Var

Company

3.10% CEMENT
11.41% ACC
-6.66% Ambuja
-8.56% Grasim
-3.51% Ultratech
-100.00% OTHERS
348.53% Adani Ent
-10.12% Tata Chem
-8.43% United Phos
-8.05% Zee Enterprise
-8.06% ENERGY
-19.29% BPCL
-7.22% Cairn India
-13.15% Essar Oil
4.75% GAIL
0.46% HPCL
-7.12% IOC
-8.77% OVGC
15.86% RIL
-14.92% Auto
-3.44% Ashok Leylnd
4.52% Bajaj Auto
27.68% Exide Indust
-5.36% Hero Moto
-7.50% M&M
-0.18% Maruti Suzuki
3.75% Tata Motors
-13.96% INDUSTRIAL
-8.23% ABB
-9.08% Bharat Forge
0.36% BHEL
-9.26% Crompton
-3.30% Cummins
-4.23% Siemens
-5.16% IT/ITES
-6.79% HCL
-0.67% Infosys
-8.29% TCS
-7.75% Wipro

Q2FY12

Q1FY12

Q4FY11

Var

1.80%
0.17%
1.40%
0.10%
0.12%
1.81%
0.05%
0.50%
0.45%
0.81%
10.38%
0.44%
0.92%
0.13%
1.44%
0.61%
0.78%
3.77%
2.27%
7.25%
2.57%
0.15%
0.80%
0.05%
0.80%
0.32%
2.55%
2.16%
0.17%
0.29%
0.41%
0.90%
0.38%
0.18%
2.33%
0.29%
0.39%
1.00%
0.64%

2.02%
0.20%
1.56%
0.11%
0.15%
1.90%
0.07%
0.52%
0.34%
0.97%
11.60%
0.51%
0.97%
0.15%
1.63%
0.68%
0.85%
4.38%
2.43%
4.00%
1.52%
0.16%
0.92%
0.06%
0.96%
0.36%
0.51%
2.04%
0.18%
0.32%
0.43%
0.82%
0.29%
0.20%
2.42%
0.29%
0.39%
1.10%
0.64%

2.04%
0.20%
1.57%
0.12%
0.15%
1.85%
0.08%
0.52%
0.37%
0.89%
11.86%
0.51%
0.96%
0.15%
1.67%
0.69%
0.86%
4.57%
2.45%
4.13%
1.57%
0.16%
0.95%
0.07%
1.01%
0.36%
0.48%
2.08%
0.18%
0.32%
0.44%
0.85%
0.29%
0.50%
2.40%
0.29%
0.36%
1.11%
0.64%

-10.92%
-13.26%
-10.19%
-9.22%
-16.79%
-5.17%
-31.79%
-4.85%
33.31%
-16.90%
-10.58%
-12.63%
-4.99%
-9.11%
-11.92%
-10.45%
-7.85%
-13.85%
-6.65%
81.32%
68.76%
-6.55%
-13.13%
-15.85%
-17.13%
-10.61%
397.98%
5.98%
-6.20%
-8.92%
-4.71%
10.87%
32.17%
-11.60%
-3.99%
-0.29%
-0.94%
-8.98%
1.04%

Company

Q2FY12 Q1FY12 Q4FY11

Var

FMCG
Asian Paints
Dabur
HUL
ITC
Nestle
Tata Global
Titan
United Spirits
INFRA
DLF
GMR Infra
HDIL
JP Associates
L&T
Mundra Port
R Infra
Unitech
PHARMA
Cipla
Divi's Lab
Dr Reddy's
Glaxosmithline
Glenmark
Lupin
Ranbaxy
Sun Pharma
ULITILIES
Adani Power
NHPC
NTPC
Power Grid
R Power
Suzlon
Tata Power

21.18% 23.62% 23.74%

0.05%
0.06%
0.08%
0.61%
0.71%
0.86%
1.65%
1.77%
1.87%
17.29% 19.30% 19.45%
0.05%
0.05%
0.06%
1.22%
1.35%
1.41%
0.31%
0.38%
0.03%
0.02%
0.03%
0.03%
6.17%
6.99%
7.06%
0.05%
0.05%
0.05%
2.00%
2.19%
2.23%
0.01%
0.01%
0.02%
1.73%
1.71%
1.60%
1.40%
1.55%
1.60%
0.64%
0.57%
0.61%
0.35%
0.39%
0.41%
0.00%
0.52%
0.54%
2.72%
3.06%
3.05%
1.01%
1.06%
1.05%
0.14%
0.15%
0.13%
0.15%
0.17%
0.17%
0.08%
0.09%
0.09%
0.11%
0.13%
0.13%
0.48%
0.59%
0.62%
0.31%
0.35%
0.35%
0.43%
0.51%
0.51%
14.35% 11.35% 10.96%
0.13%
0.21%
0.19%
2.47%
2.45%
2.27%
4.25%
4.75%
4.80%
2.41%
2.46%
2.47%
0.31%
0.34%
0.34%
0.50%
0.65%
0.42%
4.28%
0.47%
0.48%

-10.34%
-11.72%
-14.30%
-6.68%
-10.42%
-11.55%
-9.01%
-20.38%
-19.17%
-11.81%
-9.68%
-8.62%
-35.53%
1.04%
-9.89%
11.61%
-9.47%
-100.00%
-11.33%
-5.40%
-4.06%
-10.79%
-11.30%
-15.24%
-18.29%
-11.15%
-17.00%
26.41%
-41.24%
0.56%
-10.68%
-2.09%
-7.09%
-23.75%
810.08%

Insurance companies weight in BSE100

Q-o-Q changes in wt. of DII in BSE 100 Scripts - DII's maintain OW in Utilities, Auto, and Industrials, while UW in Infra and Telecom
Company

Q2FY12

Q1FY12

Q4FY11

Var

BFSI
Axis Bank
Bank Of Baroda
Bank Of India
Canara Bank
Federal Bank
HDFC Bank
HDFC
ICICI Bank
IDBI Bank
Indiabulls
IndusInd Bank
IDFC
Kotak MahBank
LIC Housfin
PFC
PNB
R Capital
REC
Shriram Tranfin
SBI
UBI
Yes Bank
Metal/Mining
Coal India
Hindalco
Jindal Steel
JSW Steel
NALCO
NMDC
Sesa Goa
SAIL
Sterlite
Tata Steel
TELECOM
Bharti Airtel
Idea Cellular
R Com
Tata Comm

11.99%
0.00%
0.36%
0.75%
0.41%
0.00%
1.83%
1.70%
2.37%
0.98%
0.00%
0.03%
2.01%
0.00%
0.17%
0.46%
0.38%
0.13%
0.43%
0.00%
1.00%
0.50%
0.24%
14.18%
0.00%
2.48%
0.49%
0.00%
1.30%
2.61%
0.23%
2.41%
1.99%
2.68%
4.73%
2.02%
0.41%
1.94%
0.35%

11.58%
0.00%
0.40%
0.83%
0.47%
0.00%
0.43%
1.91%
2.66%
1.05%
0.00%
0.03%
2.19%
0.00%
0.21%
0.49%
0.41%
0.15%
0.34%
0.00%
1.12%
0.29%
0.22%
16.02%
0.00%
2.67%
0.56%
0.00%
1.41%
3.00%
0.26%
2.88%
2.26%
2.97%
5.89%
2.46%
0.77%
2.25%
0.40%

10.88%
0.00%
0.38%
0.78%
0.47%
0.00%
0.44%
1.83%
2.61%
0.98%
0.00%
0.03%
2.07%
0.00%
0.22%
0.18%
0.43%
0.15%
0.32%
0.00%
1.06%
0.24%
0.23%
15.89%
0.00%
2.67%
0.52%
0.00%
1.43%
2.98%
0.25%
2.88%
2.27%
2.89%
6.18%
2.61%
0.93%
2.24%
0.40%

3.55%
0.00%
-9.77%
-10.13%
-14.19%
0.00%
322.07%
-11.37%
-11.03%
-6.85%
0.00%
-2.80%
-8.24%
0.00%
-17.47%
-6.19%
-8.09%
-13.38%
27.46%
0.00%
-11.27%
74.09%
9.95%
-11.45%
0.00%
-7.24%
-13.95%
0.00%
-7.97%
-13.01%
-12.31%
-16.31%
-12.05%
-9.63%
-19.58%
-17.71%
-46.49%
-13.47%
-13.32%

Company

Q2FY12

Q1FY12

Q4FY11

Var

CEMENT
ACC
Ambuja
Grasim
Ultratech
OTHERS
Adani Ent
Tata Chem
United Phos
Zee Enterprise
ENERGY
BPCL
Cairn India
Essar Oil
GAIL
HPCL
IOC
OVGC
RIL
Auto
Ashok Leylnd
Bajaj Auto
Exide Indust
Hero Moto
M&M
Maruti Suzuki
Tata Motors
INDUSTRIAL
ABB
Bharat Forge
BHEL
Crompton
Cummins
Siemens
IT/ITES
HCL
Infosys
TCS
Wipro

2.56%
0.00%
2.27%
0.11%
0.19%
1.66%
0.00%
0.66%
0.32%
0.68%
10.56%
0.42%
0.03%
0.00%
1.92%
0.56%
0.91%
3.64%
3.10%
6.39%
3.87%
0.18%
1.03%
0.07%
1.24%
0.00%
4.10%
1.07%
0.00%
0.10%
0.38%
0.59%
0.00%
0.21%
2.41%
0.27%
0.37%
1.40%
0.37%

3.04%
0.00%
2.69%
0.12%
0.23%
1.92%
0.00%
0.72%
0.37%
0.83%
12.14%
0.51%
0.03%
0.00%
2.25%
0.70%
1.02%
4.06%
3.56%
5.27%
2.24%
0.21%
1.20%
0.10%
1.52%
0.00%
0.87%
0.96%
0.00%
0.12%
0.38%
0.46%
0.00%
0.26%
2.55%
0.27%
0.38%
1.53%
0.36%

3.06%
0.00%
2.70%
0.12%
0.23%
2.00%
0.00%
0.73%
0.34%
0.93%
12.04%
0.53%
0.02%
0.00%
2.21%
0.72%
1.02%
4.03%
3.51%
5.19%
2.14%
0.20%
1.21%
0.11%
1.54%
0.00%
0.81%
0.91%
0.00%
0.12%
0.36%
0.44%
0.00%
0.77%
2.48%
0.27%
0.34%
1.52%
0.35%

-15.90%
0.00%
-15.89%
-11.03%
-18.52%
-13.61%
0.00%
-8.55%
-13.90%
-17.87%
-13.00%
-18.59%
-13.38%
0.00%
-14.75%
-19.90%
-11.40%
-10.49%
-13.05%
21.15%
72.56%
-13.25%
-14.48%
-28.23%
-18.40%
0.00%
372.82%
10.81%
0.00%
-14.92%
-1.70%
27.68%
0.00%
-17.87%
-5.60%
-3.30%
-2.77%
-8.58%
2.15%

Company

Q2FY12

Q1FY12

Q4FY11

Var

FMCG
Asian Paints
Dabur
HUL
ITC
Nestle
Tata Global
Titan
United Spirits
INFRA
DLF
GMR Infra
HDIL
JP Associates
L&T
Mundra Port
R Infra
Unitech
PHARMA
Cipla
Divi's Lab
Dr Reddy's
Glaxosmithline
Glenmark
Lupin
Ranbaxy
Sun Pharma
ULITILIES
Adani Power
NHPC
NTPC
Power Grid
R Power
Suzlon
Tata Power

23.05%
0.08%
1.02%
2.26%
19.04%
0.06%
0.49%
0.10%
0.00%
2.27%
0.02%
0.00%
0.00%
1.32%
0.37%
0.00%
0.55%
0.00%
2.28%
1.16%
0.00%
0.16%
0.00%
0.00%
0.51%
0.45%
0.00%
10.80%
0.00%
1.30%
0.00%
2.30%
0.32%
0.17%
6.72%

26.76%
0.10%
1.20%
2.58%
22.17%
0.07%
0.57%
0.08%
0.00%
3.24%
0.03%
0.00%
0.00%
1.52%
0.42%
0.00%
0.64%
0.63%
2.74%
1.34%
0.00%
0.18%
0.00%
0.00%
0.66%
0.56%
0.00%
5.13%
0.00%
1.27%
0.00%
2.55%
0.37%
0.15%
0.78%

27.10%
0.11%
1.41%
2.63%
22.33%
0.07%
0.55%
0.01%
0.00%
3.27%
0.03%
0.00%
0.00%
1.51%
0.42%
0.00%
0.63%
0.68%
2.79%
1.34%
0.00%
0.19%
0.00%
0.00%
0.70%
0.55%
0.00%
5.10%
0.00%
1.26%
0.00%
2.54%
0.37%
0.15%
0.78%

-13.86%
-12.87%
-14.94%
-12.62%
-14.11%
-16.51%
-13.22%
29.78%
-12.94%
-30.09%
-10.08%
0.00%
-13.38%
-13.38%
-12.90%
-13.38%
-13.30%
-100.00%
-16.73%
-13.36%
0.00%
-14.43%
0.00%
0.00%
-22.46%
-18.81%
0.00%
110.56%
0.00%
2.20%
0.00%
-10.02%
-13.38%
10.71%
757.11%

DII & Insurances movements

Major movement of DIIs Holding during FY10-FY11 in BSE 100 scripts
Company

DIIs bought growth, discounted threat

Q2FY12

Q1FY12

Q4FY11

Q3FY11

Q2FY11

Tata Power

4.3%

0.5%

0.5%

0.5%

0.5%

Ashok Leyland
Tata Motors

2.6%

1.5%

1.6%

1.6%

1.7%

2.5%

0.5%

0.5%

0.5%

0.7%

HDFC Bank

1.6%

0.4%

0.4%

0.4%

0.4%

Unitech

0.0%

0.5%

0.5%

0.4%

0.5%

Federal Bank
IndusInd Bank

0.0%

0.3%

0.3%

0.3%

0.3%

0.2%

0.3%

0.3%

0.2%

0.3%

Titan

0.3%

0.4%

0.0%

0.0%

0.0%

Lupin

0.5%

0.6%

0.6%

0.6%

0.7%

M&M

0.8%

1.0%

1.0%

1.1%

1.1%

Insurance backed BFSI, sold Infra & Energy

Major movement of Insurance Holding during FY10-FY11 in BSE 100 scripts

Company
Tata Power

Q2FY12
6.7%

Q1FY12
0.7%

Q4FY11
0.7%

Q3FY11
0.8%

Q2FY11
0.8%

Tata Motors

4.1%

0.9%

0.8%

0.9%

1.0%

Ashok Leylnd

3.9%

2.2%

2.1%

2.4%

2.4%

HDFC Bank

1.8%

0.4%

0.4%

0.5%

0.5%

UBI

0.5%

0.3%

0.2%

0.3%

0.3%

REC

0.4%

0.3%

0.3%

0.3%

0.3%

Unitech

0.0%

0.6%

0.7%

0.7%

0.8%

Siemens
Idea Cellular

0.2%

0.3%

0.8%

0.8%

0.8%

0.4%

0.8%

0.9%

0.9%

1.0%

HPCL
Bharti Airtel

0.6%

0.7%

0.7%

0.8%

0.7%

2.0%

2.5%

2.6%

2.9%

2.8%

& denotes Q-o-Q increase & decrease in holding

DIIs favored BFSI, Auto, Utilities and IT sectors

where their holding has increased in Q2FY12
as compared to Q1FY11. On individual
stocks, DIIs has shown its faith in Tata
Power, Tata Motors, and HDFC Bank, where
they increased there holding in Q2FY12 as
compared to Q1FY12 while they reduced their
holdings in Unitech, Federal Bank and Lupin
during the same period.

Insurance companies are the major

constituents of DII, with distinguish
in
investment style and holding pattern. While
this quarter has shown some similar pattern
between Insurance and DIIs activity, Like
DIIs, Insurance companies increased their
holding in Utilities, Auto and BFSI sectors. On
individual stocks, DII increased their holdings
in Tata Power, Tata Motors, and HDFC
Bank, while reduced their holding in Unitech
and Siemens in Q2FY12 as compared to
Q1FY11.

Initial Public Offer

Month -wise No. of IPO Issuance
20

Range

2011

2010

3 yr Avg

18
16
No of Issuance

14
12
10
8
6
4
2
0
Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

IPO/FPO issued in Q2FY12

Source : SEBI, BSE, R K Global Research

Month-wise fund rose through IPO

20000

Range

2011

2010

3 yr Avg

18000
16000

` Crores

14000
12000
10000
8000
6000
4000
2000
0
Jan

Feb

Mar

Apr

Source: SEBI, BSE, RK Global Research

Fund raising stemmed as global conditions

impacted investor sentiments
During Q2FY12, 17 companies raised a total of
~`1435cr
compared to ~`7951cr from 23
companies same period last year, through IPOs.
However, concerns of weakening global economy
has impacted investors sentiment and thus big
ticket IPO/FPO like ONGC, IOC & SAIL etc has been
delayed multiple times. IPO activity has slowed
down significantly during Apr-Sep11 as only 26
companies participated with net fund of `8418cr
raised through IPOs compared to `15030cr during
the same period last year.

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Company
Issue Date
Size `mn Issue Price `
Bharatiya Global
11-Jul-2011
551.1
82
Inventure Growth & Secutities 20-Jul-2011
819
117
L&T Finance Holding
27-Jul-2011 10972.8
52
Tree House
10-Aug-2011
1138
135
Brook Lab
16-Aug-2011
630
100
SRS Ltd
23-Aug-2011
2030
58
TD Power
24-Aug-2011
2226.5
256
PG Electroplate
07-Sep-2011
1206.4
210
Prakash Constrowell
19-Sep-2011
636.9
138
RDB Rasayans
21-Sep-2011
355.5
79
Swajas Air Charters
26-Sep-2011
401.8
90
Tijaria Polypipes
27-Sep-2011
600
60
Onelife Capital Advisors
28-Sep-2011
368.5
110
M AND B Switchgears
28-Sep-2011
930
186
Taksheel Solutions
29-Sep-2011
825
150
Flexituff International
29-Sep-2011
1046.3
155
Indo Thai Securities
30-Sep-2011
296
74

Qualified Institutional Placement

Month-wise fund rose through QIP

Month-wise no. of QIP issued

18

Range

2011

2010

Range

120

4 Yrs Avg

2011

2010

4 Yrs Avg

16

100

14
No of Issuance

12

80
` Crores

10
8

60
40

20

2
0

0
Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Source : SEBI, BSE, R K Global Research

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source: SEBI, BSE, R K Global Research

QIP issued in CY11 during Jan-Sep

QIP issuance decline, raised `3344crs down ~80 % Y-o-Y

Company

Issue Date Price in ` Value `Cr

M & M Financial Services

22-Feb-11

701

4262

Canara Bank

15-Mar-11

609

19932

Shakti Pumps (India)

20-Apr-11

139

40

Sumeet Industries

28-Apr-11

39

553

ING Vysya Bank

22-Jun-11

320

5131

Excel Infoways

06-Jul-11

25

257

FE India

08-Jul-11

69

84

Apollo Hospitals

20-Jul-11

494

3300

SKS Microfinance

27-July-11

900

Source: SEBI, BSE, Ace Equity, R K Global Research

Fund-raising through QIPs had slowed down this year due to

volatile global market conditions. Most investors were tentative to
participate in QIPs since the shares of many companies that were
sold through QIP in the past were trading below the issue price
resulting a negative sentiment with no support from market, as the
first nine months of this year have seen an 83% decline in raising of
such funds. Companies raised `4368crs through 8 QIPs transactions
between Jan-Sep CY11, down from `19294crs garnered through 42
such deals in the same period last year. During entire
CY10, companies raised `28339crs through 53 QIPs. In CY11 till
Sep, QIP was the most unflavored route for Indian companies
compared to other modes such as FPO, rights issues and
preferential route. Most of the funds raised so far this year appear
to be through the preferential placement. The companies raised
`27361crs through preferential allotments during the Jan-Jul CY11.

Forthcoming Issuance & Outlook

Forthcoming IPOs
Company
Emaar MGF Land
BPTP
Avantha Power & Infrastructure
Skil Infrastructure
Kalpataru
Raheja Universal
You Broad Band & Cable India
Jain Infraprojects
NKG Infrastructure
TD Power Systems
Tara Jewals

Issue Type
Book Building
Book Building
Book Building
Book Building
Book Building
Book Building
Book Building
Book Building
Book Building
Book Building
Book Building

Issue Size (` cr.)

1600
1500
1250
1125
1008
864
360
300
275
250
200

Open Date
--------------------------------------------------------

Close Date
--------------------------------------------------------

Offer Price
0
0
0
0
0
0
0
0
0
0
0

Source: SEBI, BSE,R K Global Research

Outlook
Current domestic & global macro economic condition has impacted fund flows which in turn has impacted the
equities market world wide. During October11, FIIs net inflow stood `1677.4crs (US$ 346.51mn) in equity
market and invested `1401.4cr (US$287.82mn) in debt market. On the other hand, DIIs were the net seller of
`2295.3cr. While, Benchmark index, Sensex rose of 7.6% during the same period. The global condition is still
under pressure from both the heavyweight economies - the US and Euro Zone - which will deter the global
growth prospect. In these condition, raising funds through the equity market will be challenging for India Inc.
Many companies, over the past few months, deferred their plans to raise funds through primary markets as
investor sentiments remained bearish given the current global conditions. However, companies with sound
fundamentals might fare better but they wont be able to get the high valuation which markets has given to the
companies during pre-2008 period.

Contact Us.
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Mumbai 400 009
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Email: research@rkglobal.in