Foreign institutional investors (FIIs), American depository
receipts (ADRs) holders and banks have increased their
holding in the top four domestic pharmaceutical companies
Ranbaxy, Dr Reddy's Labs, Nicholas Piramal and
the quarter ended 30 June 2003, the FIIs increased their
holdings in Ranbaxy from the earlier 22.61 per cent
to 24.08 per cent and in Nicholas Piramal from 2.35
per cent to 3 per cent. In Cipla, the foreign institutions
increased their holding from the earlier 8.26 per cent
to around 7 per cent.
ADR holders of Dr Reddy's increased their holding in
the company by around 2 per cent from 19.32 per cent
to 21.48 per cent. But the FIIs reduced their exposure
in the company from the earlier 24.15 per cent to 22.73
per cent during the same quarter.
Sameer Narayan, a pharma analyst with Enam Securities:
"The growth prospects of all these firms are very
strong. Big export potential for generic drugs in the
world market has attracted many investors into these
firms. Visibility of earnings is also high in these
domestic banks and financial institutions (FIs) also
enhanced their holdings in Dr Reddy's, Cipla and NPIL.
In Dr Reddy's the banks and FIs acquired another 1.5
per cent while in Cipla the domestic institutions increased
their holding to 10.22 per cent from the earlier 9.83
per cent. In Nicholas Piramal, the FIs and banks picked
up another 1 per cent during the last quarter.
the meantime, the stocks of steel, cement and oil and
gas companies were the hot favourites of mutual funds
in June 2003. Funds also jumped on to the Maruti initial
public offering wagon last month.
Vipul Dalal of IL&FS Investmart: "Visibility
of earnings in the steel, cement and other old economy
counters are high as the earnings are expected to grow
in the next two quarters. Cement is particularly attractive
after the Grasim-L&T deal."
funds also couldn't resist stocks of companies manufacturing
steel and steel products that month, as they made fresh
investments in Steel Authority of India Ltd (SAIL),
Maharashtra Seamless, PSL, and Jindal Iron & Steel.
and Maharashtra Seamless were introduced into the HDFC
portfolio, while AllianceCapital purchased PSL and Jisco.
Exposure to Tisco was also enhanced in a big way. Analysts
believe attractive valuations, higher steel prices and
a better product mix are likely to keep steel stocks
buzzing for another year.